how much does the house cost? and how much is your housing allowance you need to throw down numbers for people to see if this is worth it - also how much do you pay to board the horse vs keeping it on your land for free.
So the house is selling for $289,000. We get $6,000 back at closing. The land is 220 feet wide and about a mile (not literally) long to make 10 acres. When it was subdivided that was done because a certain amount of feet was needed of road frontage and the person wanted to get as many lots as possible back in the day. The back half is all wooded, but we have the equipment to clear it as time goes on.
Property tax is $5,400 a year.
Homeowners insurance $85/month
Mortgage insurance $30/month (PMI?)
15 year at 4.125% $1,832 with 15% down
20 year at 4.5% 1,554,10 with 15% down
So the PMI would go away after payment number 22 on the 15 year which would cost us an extra $675.22 if we didnt do the extra 5% down payment (saving us $14,450 upfront) Is 20% down truly necessary?
Horse board - $325 currently.
At home horse cost, - ~$5,000 2 stall horse building, $4/day feed cost
My employer pays $900/month rent but any similar house in area would be at least $1,500 rent. I will receive approximately $200 more per week in my salary check pre tax if we bought the house.
With the 15 year loan, and the horse boarding fee off site until next spring, and our current spending habits along with contributing the same to our retirement we would have $1,862 left over in pocket each month after all expenses. Some spending habits can be reduced as well. My fiance is in military and is expecting a significant raise this year so that number will be much higher.