Help with Mortgage + taxes (CA)

[Brandi]

OK, we were talking with our realtor and financial dude about the breakdown of a mortgage, prop taxes, etc.

I knew prop taxes were high in Cal but he said 1.7% per year?? On a $300K house, that breaks down to over $400 a month just for taxes? please tell me I'm doing something wrong. There is no flipping way taxes can run $400-$500 a month on a $300K house... that does not include Mello Roos and HOA or Home Owners either.

OMG

Is that really what it breaks down to? Over $400 a month in taxes?

Holy sweet jesus.

[MW5M]

425 a month broken down.

[Ma*Becca]

Holy cow, WTH!! I hope that isn't true

[Brandi]

Originally Posted by Ma*Becca Holy cow, WTH!! I hope that isn't true

I don't think I misunderstood home. I dunno. I Made it clear from the get go about what we could afford and they approved us for WAAAAAY more than the purchase price we're looking into, and I even told them then that we could not, would not go that high b/c we can't afford the payments on something that expensive. Hell, we can't even afford the taxes on a house less than what we were looking into purchasing. Holy ****.

Wow.

[Ma*Becca]

Originally Posted by Brandi I don't think I misunderstood home. I dunno. I Made it clear from the get go about what we could afford and they approved us for WAAAAAY more than the purchase price we're looking into, and I even told them then that we could not, would not go that high b/c we can't afford the payments on something that expensive. Hell, we can't even afford the taxes on a house less than what we were looking into purchasing. Holy ****. Wow.

I found this, it has some #'s on it!! I'm kind of sad right now

http://www.apartmentsandiego.com/buying.htm

[kaaau]

They have always approved us for way over what we felt we could afford. The best way we found to approach it was to decide how much we could aford (including the taxes etc) and ask the realtor which price range would keep us in that ballpark. That way you control the monthly payments and don't get in over your head when buying. We also decided to not have any more going out in payments, including all monthly payments than we could handle on one paycheck. That way the second paycheck always paid for the extras like vacations, fixing up the house etc and when the second paycheck wasn't there for whatever reason, we could still make it and do without the extras.

Also we decided not to ever buy in an area that had an HOA or anything like that because of the numerous problems in dealing with them in CA. We know of them raising the dues, deciding they have to approve what color you paint the house, what flowers or bushesyou can put in, calling you to tell you your grass is being cut to long and you need to cut it shorter, calling to tel you to take children's toys out of the front lawn, telling you what kind of fence can be put in, what decorations you can use during the holidays etc.

I'm sorry it is so hard but at least you can look around and find something you can afford. Don't let them push you into something that ou can't afford or will have a hard time affording. It won't affect them in the long run and you have to be comfortable with what your paying.

I hope you can find something that works for you.

[Brandi]

Originally Posted by Ma*Becca I found this, it has some #'s on it!! I'm kind of sad right now http://www.apartmentsandiego.com/buying.htm

Yeah, and I think that article is old. He told me 1.7%, I am almost certain.

Yeah, there is no way no how we're buying right now. We can't find a single thing we like or would live in for less than $300K, and even most of those are short sales which will probably sell for 5-10% more than that, AND it's not including MR or HOA.

There is just no way. No way no how, and that's before you even factor in the Utls.

Oh well, it was exciting while it lasted, I guess.

[amanda1986]

We live in texas and our property taxes on our house are about 3500 a year, our house cost us 120,000 when we purchased it. Property taxes are outrageous, I know certain counties out here they are about 6 grand a year. With ours we pay them yearly, but if I could do it over again I would have had them added into my mortgage payment. We pretty much use our tax return every year to pay off our property taxes. It sucks!!!

[Brandi]

Originally Posted by kaaau They have always approved us for way over what we felt we could afford. The best way we found to approach it was to decide how much we could aford (including the taxes etc) and ask the realtor which price range would keep us in that ballpark. That way you control the monthly payments and don't get in over your head when buying. We also decided to not have any more going out in payments, including all monthly payments than we could handle on one paycheck. That way the second paycheck always paid for the extras like vacations, fixing up the house etc and when the second paycheck wasn't there for whatever reason, we could still make it and do without the extras. Also we decided not to ever buy in an area that had an HOA or anything like that because of the numerous problems in dealing with them in CA. We know of them raising the dues, deciding they have to approve what color you paint the house, what flowers or bushesyou can put in, calling you to tell you your grass is being cut to long and you need to cut it shorter, calling to tel you to take children's toys out of the front lawn, telling you what kind of fence can be put in, what decorations you can use during the holidays etc. I'm sorry it is so hard but at least you can look around and find something you can afford. Don't let them push you into something that ou can't afford or will have a hard time affording. It won't affect them in the long run and you have to be comfortable with what your paying. I hope you can find something that works for you.

Yeah, we set a MAX and are definitely sticking to it... but with $400-$500 just in taxes alone, we can't afford anywhere near what we thought we would, and we're BARELY finding houses we like or would settle on before you even factor in this new info. So, it's a definite no go. There is absolutely nothing nothing nothing anywhere in this area or even surrounding areas (with less than a two hour commute) that we can afford that we'd actually live in. The places that are within our price range now are in the ghetto. So, no. I am sad now but I refuse to overextend, which is what we'll have to do in order to live in a comfortable place with a comfortable mortgage payment.

Oh well.

I'm just in a state of shock. 1.7% is HIGH. And all of the places we'd consider living have HOA and MR, in addition.

[Ma*Becca]

Originally Posted by Brandi Yeah, and I think that article is old. He told me 1.7%, I am almost certain. Yeah, there is no way no how we're buying right now. We can't find a single thing we like or would live in for less than $300K, and even most of those are short sales which will probably sell for 5-10% more than that, AND it's not including MR or HOA. There is just no way. No way no how, and that's before you even factor in the Utls. Oh well, it was exciting while it lasted, I guess.

Don't give up yet I'm going to talk to our guy and ask him some more questions. I also know we're not going to buy a home with HOA fees, I just don't see the purpose of that Things always have a way of working out!