Can I swing this?

There's a discussion titled "closing costs" that you should look at. The closing costs for a coop are around 6% but for a condo will be more like 75K. Your cash on hand will be almost all used by the down payment. Which would mean most of your family line of credit will be eaten up by closing costs.

http://www.csmonitor.com/2004/0609/p01s03-wogi.html

I don't understand why your closing costs are going to be so high. Can you itemize them? Are you including transfer taxes? These should be borne by the seller. Without them, I think your costs should be about 3% of the mortgage amount plus any tax escrow, common charge contribution and legal fees.

Agreed. $75K sounds pretty high.

What I find irritating is that you make so much but saved so little. If you are just out off college then this is perfectly fine. If you enjoy a peak in earnings because economy is very good I would not rely on this down the line. If it is a coop they may want to see money in the bank to cover maintenance etc for a year or so but 10% down sounds more like a condo. I don't see how closing on a condo would be 75K.

http://www.streeteasy.com/nyc/talk/discussion/884-Closing_Cost

curious, what field do you work in and how much do you make? thanks.

They'll be a 1% mansion tax and mortgage tax of almost 2%. That's 40K. Add to that bank fees, attorneys, taxes and any upfront common charges. For a condon there's title insurance.

As a CFP(tm), there is too little information here for me to advise.
Comment #6, who are you to judge? You don't know circumstances.

OP HERE. This is a condo. I posted my closing cost estimate in another thread. 75 is max, may be more like 65. Titie insurance is big on a condo. As far as saving, I just got married and my wife is starting to make significant money, and her job is very stable.

cutting too close - Assume you use all your cash on hand for down payment + closing costs. Also assume a 1.3MM mortgage at 6% = $7800/month. Add $2600 in monthlies and you're way over your range. Even figuring in the tax adv., you're still probably over by a little bit.

If this is not new construction - i dont understand why closing costs are so high! I bought a new condo and closing costs were a little under 3%. It was not over $1m though so it didn't have the mansion tax.

If you save 7K a month I would just wait another year and keep renting some place. Yes maybe the market keeps going up but personally I doubt that. If you shop in the 1.4 range there is plenty of inventory so I wouldn't worry about letting it go.

I just moved purchasing out another year for the same reason. I am looking for a 500K studio but couldn't find anything I like so I just wait to get a bigger downpayment together.

agree with #15 - for next 12-18 months market is flat to trending downwards, so why not sit tight?

75K is 5% closing costs on a 1.5MM apt which is a conservative, but a good, safe estimate when you're trying to figure out whether an apt is affordable.

OP: Are you going to do it?