We have a 3 month Emergency fund, and the money we've set aside for a downpayment on a home. Originally, this was to have been a 6 month EF and a downpayment but our luck preceded us, home prices went up and that "ate" into our emergency funds.
We are now shopping for a home. Once we've bought the house, we would be left with only 3 months of expenses in our EF. If you're a long term homeowner could you share if this is a good idea and enough EF for a homeowner? I realize that no one can has a crystal ball and nothing can be said for sure, but how would being in this situation make you feel? We have a moderate nest egg in our retirement portfolios and DH is trying to comfort me by saying we could use that if - God forbid - the situation ever arose but I need your advice / opinion.
Does it make a difference if the home is a brand new construction by a reputed builder who offers a year's warranty? What about if it were a 60 yr old house?
Please share your homeownership experience with me. For the record, if we put down that 20%, our PTI would be the same as our current rent (except for the property taxes which we'd have to save up for and maintenence which we have no idea about).
Should we just postpone "shopping" by another 6 months, build our EF back up to 6 months and hope home prices haven't continued to rise in the meantime? This isn't about timing the market as much as the desire to ensure we have adequate emergency funds to lean back on in case the worst happens.
Thank you all in advance for sharing your insights and feedback. Much appreciated.
We are now shopping for a home. Once we've bought the house, we would be left with only 3 months of expenses in our EF. If you're a long term homeowner could you share if this is a good idea and enough EF for a homeowner? I realize that no one can has a crystal ball and nothing can be said for sure, but how would being in this situation make you feel? We have a moderate nest egg in our retirement portfolios and DH is trying to comfort me by saying we could use that if - God forbid - the situation ever arose but I need your advice / opinion.
Does it make a difference if the home is a brand new construction by a reputed builder who offers a year's warranty? What about if it were a 60 yr old house?
Please share your homeownership experience with me. For the record, if we put down that 20%, our PTI would be the same as our current rent (except for the property taxes which we'd have to save up for and maintenence which we have no idea about).
Should we just postpone "shopping" by another 6 months, build our EF back up to 6 months and hope home prices haven't continued to rise in the meantime? This isn't about timing the market as much as the desire to ensure we have adequate emergency funds to lean back on in case the worst happens.
Thank you all in advance for sharing your insights and feedback. Much appreciated.
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