# How should a newlywed couple save up for a house?



## qdobajoe (Jun 14, 2009)

My wife and I are recently married...about 3 weeks. We just got back from our honeymoon, and things are starting to get back to normal.

We want to buy a house in the near future (3-5 years or when this economy turns around) but we dont really have a game plan for saving up. Any advice?

We already own a condo that my wife came into the marriage with. We have been living there for about 2 years now and she has a mortgage on it. She will get done paying it off in about 28 years (she is on the 30 year plan).

Any advice/suggestions?


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## Sandy55 (Jun 3, 2009)

The first thing I would do is get rid of the 30 year mortgage if you can afford to do so. In this economy I'd stay put, get a 15 year mortgage and hang tight for 3-5 years. That way you will be saving up equity at a much faster rate. 

Be careful about closing costs though, shop around, many places are competitive. You should be able to get an interest rate at less than or right around 5%. We just refi'd at 4.65% for 15 years. Our payment went up a whopping$54.00 a month, but we had a 7% on it before...but in the long haul, we are putting much more down on principal. 

Another thing you can do to save is live on ONE paycheck rather than two. Hard, yes, but you can put away a ton of money very fast. Bite the bullet, don't use papertowels, use generic, try to use public transportation. Have a moratorium on buying anything NEW, do used buying only for two years.

You would be surprised how, when one sets their mind to it, much money one can find to save... 

Good Luck! Congrats.


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## qdobajoe (Jun 14, 2009)

as a downpayment for our new house we want to buy you dont think it would be easier for us to just sell our condo and use that money as the down payment and closing costs, etc.



Sandy55 said:


> The first thing I would do is get rid of the 30 year mortgage if you can afford to do so. In this economy I'd stay put, get a 15 year mortgage and hang tight for 3-5 years. That way you will be saving up equity at a much faster rate.
> 
> Be careful about closing costs though, shop around, many places are competitive. You should be able to get an interest rate at less than or right around 5%. We just refi'd at 4.65% for 15 years. Our payment went up a whopping$54.00 a month, but we had a 7% on it before...but in the long haul, we are putting much more down on principal.
> 
> ...


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## Sandy55 (Jun 3, 2009)

Unless you are in a sellers market NO, do not sell now. Refi, stay put.


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## qdobajoe (Jun 14, 2009)

we are looking to buy a house in the next 3-5 years.



Sandy55 said:


> Unless you are in a sellers market NO, do not sell now. Refi, stay put.


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## BadKarma (Jun 27, 2009)

Have you every read Dave Ramsey's Total Money Make Over book? Good stuff on getting out of debt and saving money. He also has a TV show on Fox Money I believe. Listen in to it one day or google him, I'm sure there is a lot of Dave Ramsey advice/video/audio on the internet.


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## TabbyCat (Jun 13, 2009)

I think the best way to save money for your house is to get a second job. An part-time job could be your down payment after a couple of years.

I've asked people (including mom and dad) how they've been able to do things, and it's the second job. Anything worthwhile is worth working hard for.

I would also refinance the condo.


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## michzz (Jun 6, 2008)

Don't have a new car. Stop the cable TV and just have the channels you get from the air. Don't go to restaurants. If you both have cell phones, don't have a home phone or use skype on the internet. When you need things, shop Walmart and Target or thrift stores. Don't go to Starbucks.

Don't go on expensive vacations. Don't use charge cards.

Do you see the trend of what I'm saying? 

Sacrifice today's conveniences and material satisfactions and use the money you would have spent to save for a down payment on a house.

It doesn't have to feel grim, you can make it with resolve and determination.


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## preso (May 1, 2009)

I'd buy now... something you can easily afford instead of paying rent and sell it when the economy improves, use the equity to buy a better house. 
Paying rent is such a waste. You can buy a small house for what you pay in rent.


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## michzz (Jun 6, 2008)

preso said:


> I'd buy now... something you can easily afford instead of paying rent and sell it when the economy improves, use the equity to buy a better house.
> Paying rent is such a waste. You can buy a small house for what you pay in rent.


Depends on where you live and your income level. Not true everywhere, even now.


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## GAsoccerman (Mar 24, 2008)

well I like Sandy's Idea, but also another option to me is, TRY and sell the condo, if you can sell the condo, and buy a nice house and afford a 15yr mortgage, by all means swing for the fences.

I say Follow Sandy's advice for the refinance to a 15 yr fixed.

Then place the Condo on the market, with the thinking of, If we get a great offer...then sell it. If not, no worries we are in good shape.

I mean putting it on the market can't hurt, if someone buys it they do, if not...then your still in good shape, since she bought it already 2 years ago.

Especially with two incomes now, you can probably refinace with great credit.

Go for the refinance, put the condo on the market with the thinking of a number you will not settle less for, this way you can use that money for a down payment for a single family home.


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