Best Saving Practices

[Cooter01]

I read up on them last year and there were a ton of them with higher advertised interest rates that had terrible reviews about getting your money out. I chose to sign up for a promotional deal at Wells Fargo (where I have banked for 2 decades) and it was 12 months at 4.5% with $25k in new money brought in. I had just sold my boat so that qualified me with the new money. They also look at direct deposit from payroll as new money, and they gave a 30 day window to hit the new money target. Last week I was in there and I think they had a similar deal, but the rate was slightly lower and term was shorter. I think any of the big banks will have promotional offerings like this, I would go with a trusted name over a couple of tenths of a percentage point personally....

Also check local credit union, that is on my to do list. Last I heard they were a full 1% higher yet not sure on all of the terms and conditions.

 

[f12517]

My hope of putting 20% down on a home has long sailed away, as with almost all first time buyers. Realistically what I would like to be able to do is put 3-5% down and still have a large nest egg leftover. Either to do renovations, or if the house doesn’t need anything start buying toys.

I'm gonna say it since no one else has. You've said a lot of smart things...until this. I'd encourage you to get to at least 10% down. As others have mentioned you'll be paying PMI. Might want to see how much a month that is. It's usually at least a few hundred a month that is literally thrown away to protect the lender and provides no value to you. And if you can only afford 3-5% down, you're not in the position to be buying toys. Time to make adult decisions...

I'd be very careful with renovations. Chose where you put money into the house wisely.

I watched so many neighbors lose their houses, their ass and everything else after the 08 crash. The one thing they had all done was overextend themselves. Super low down payments to buy homes, used the equity like an ATM to buy boats and lifted trucks and by 2010 it was all gone.

I do think putting your money into a high yield account and keeping it liquid is a smart play if you're planning to buy within the next few years....

 

[zhandfull]

I’d love to, but I just started a massive project at work and I don’t like messing around when I can’t watch my money.

I would second a brokerage account. Wouldn’t recommend day trading though. Think S&P 500 or good solid company stocks with regularly scheduled contributions over a long period of time.

 

[rivermobster]

My fiancée and are getting serious about buying a house by the end next year. She just got a job and our plan is to sock away a good chunk of money every month until we do so.

I’ve never been one to do much with my money, it mainly just sits in a standard savings account and I dabble in small amount of stocks.

My thought is to open a high yield savings account and put a majority of our savings in there. I like the fact that it can be pulled out quickly in case of an emergency or if the perfect house pops up before our planned timeline. It seems 4-4.5% is the going rate these days.

Is there any other options I should be looking at or things to look out for when open a high yield account?

Thank you in advance.

Solid plan.

That's exactly what I did to buy my first house. I had a dollar amount I wanted to save every month, and I did what I had to do to get there.

Side jobs. Overtime. Whatever it took, to make my goal every month.

Also, take the class the realtors take to get their license. You'll learn Everything you need to know about making one of the most important decisions of your life.

Buying your first house is a rush.

 

[attitude]

I'm gonna say it since no one else has. You've said a lot of smart things...until this. I'd encourage you to get to at least 10% down. As others have mentioned you'll be paying PMI. Might want to see how much a month that is. It's usually at least a few hundred a month that is literally thrown away to protect the lender and provides no value to you. And if you can only afford 3-5% down, you're not in the position to be buying toys. Time to make adult decisions...

I'd be very careful with renovations. Chose where you put money into the house wisely.

I watched so many neighbors lose their houses, their ass and everything else after the 08 crash. The one thing they had all done was overextend themselves. Super low down payments to buy homes, used the equity like an ATM to buy boats and lifted trucks and by 2010 it was all gone.

I do think putting your money into a high yield account and keeping it liquid is a smart play if you're planning to buy within the next few years....

I get it’s not the smartest thing to do but 20% down will not work for my time frame or for the area I want my kids to grow up in. Putting 3.5% down or 10% doesn’t make a huge difference in payment, for a few hundred a month I’ll keep the extra 40-50k in my bank account.

Also, when I say renovations I’m not talking about hiring people to come turn my house into a social media esthetic masterpiece. I’m thinking simple stuff we can tackle ourselves, paint, flooring, landscaping, etc.

Life’s short and my kids are getting older every day(3&6), I want to make the same memories with them as I had as a child. I’d rather them have memories of going to the desert or river than of living in a rental for a few more years until their parents can put 20% down on a house. It’s all a balancing act, financial stability isn’t promised, but neither is tomorrow…

 

[attitude]

Solid plan.

That's exactly what I did to buy my first house. I had a dollar amount I wanted to save every month, and I did what I had to do to get there.

Side jobs. Overtime. Whatever it took, to make my goal every month.

Also, take the class the realtors take to get their license. You'll learn Everything you need to know about making one of the most important decisions of your life.

Buying your first house is a rush.

That’s exactly what we’re doing, it just so happens I was offered some side work last week and I have been taking full advantage of it.

Can’t wait for the day we can sit down and say we’re ready.

 

[Cooter01]

Solid plan.

That's exactly what I did to buy my first house. I had a dollar amount I wanted to save every month, and I did what I had to do to get there.

Side jobs. Overtime. Whatever it took, to make my goal every month.

Also, take the class the realtors take to get their license. You'll learn Everything you need to know about making one of the most important decisions of your life.

Buying your first house is a rush.

Ditto on taking real estate classes and side work, it will add up fast as well as cutting back on expenses. Once your change your mindset anything is possible!

 

[rivermobster]

That’s exactly what we’re doing, it just so happens I was offered some side work last week and I have been taking full advantage of it.

Can’t wait for the day we can sit down and say we’re ready.

Take that class you you will be.

 

[zhandfull]

There maybe some distressed property owners now or in the future. Might be able to find a place just by catching up some back payments and taxes through careful negotiations. This would require some networking through work, church, community. Letting people know your looking for a place to buy and/or take over payments.

 

[Member: 71]

Step 1. Avoid the watch thread.

 

[coolchange]

SGOV ?

 

[attitude]

There maybe some distressed property owners now or in the future. Might be able to find a place just by catching up some back payments and taxes through careful negotiations. This would require some networking through work, church, community. Letting people know your looking for a place to buy and/or take over payments.

I had no idea that was a possibility, thank you for the tip.

 

[BingerFang]

Also, here is a cool app to find homes with assumable mortgages which seems pretty awesome: https://www.withroam.com/zipcode/85281?viewport=-112.04416:33.29001:-111.81166:33.56458

 

[PlumLoco]

Purely by chance we bought out current house from HUD in Aug. 2016.
HUD rep was just a local realtor and usually working for C21. Govt. was asking $530K. We countered even though we felt the asking price was a good deal for a 2000 sq. ft. Victorian with two other 850 sq ft buildings suitable for rentals/in-laws with some work, all on 3/4 acre lot with citrus groves for neighbors on both sides. We offered $465K because the realtor said it had been listed for 5 months already and there had been no recent interest. After another round of back and forth HUD accepted $489,000.
The moral of the story is there are still bargains to be had. Check alternative sites and even repost and auctions.

 

[Rivrat]

I’ve got a nice 1.5 acre place in Cave Creek that has yet to hit the market. Decent down and I’d hold the note to an RDP member…

 

[Your ad here]

Have you even gotten approved for a home loan? If not, that'll answer a lot of your questions and get you on your way to home ownership and securing securities. Saving is a good thing but make sure you can save more than houses go up in value. If you can't, you're just going to go broke safely. Like mentioned by Happy Smitty the Vorhees group is a good company to handle your money. I'd say get into something now. Most, if not, all cases I've seen when people wait on money or timing the market they didn't end up with what they wanted and end up with less for more than if they had bought 5 years prior... 08 to 11 was a rare case that'll not happen again in our lifetime.

 

[Havasu blue label]

I use Amex, 3.70 currently. You can get better rates maybe 3.80, 3.90, yet usually they want a minimum contribution within 30-60-90 days. I very much like Amex customer service.

High Yield Savings Account Online with no Fees | Amex US

Maximize Your Savings with an American Express High Yield Savings Account. Featuring Competitive Interest Rates & No Fees. Open an Account Today!

www.americanexpress.com

I would call Amex they are offering 4.75

 

[attitude]

Have you even gotten approved for a home loan? If not, that'll answer a lot of your questions and get you on your way to home ownership and securing securities. Saving is a good thing but make sure you can save more than houses go up in value. If you can't, you're just going to go broke safely. Like mentioned by Happy Smitty the Vorhees group is a good company to handle your money. I'd say get into something now. Most, if not, all cases I've seen when people wait on money or timing the market they didn't end up with what they wanted and end up with less for more than if they had bought 5 years prior... 08 to 11 was a rare case that'll not happen again in our lifetime.

I’d love to get pre-approved just to see what we qualify for, I have an idea but you never know until you know. However, we are in a lease until July and I plan on renewing one more year. We both have 800+ credit scores and I don’t want to ding them just to see.

The housing market is a whole other topic. Personally I don’t believe houses in AZ will go up in price over the next year, even if they do it will be a tiny percentage. The average sales price in Maricopa county just dropped $20,000 MoM, and inventory is still rising. This is supposed to be the busy season…

 

[attitude]

I’ve got a nice 1.5 acre place in Cave Creek that has yet to hit the market. Decent down and I’d hold the note to an RDP member…

Cave Creak is beautiful, we just drove up there last weekend so the boys could see the big Transformers Statue.

 

[Your ad here]

I’d love to get pre-approved just to see what we qualify for, I have an idea but you never know until you know. However, we are in a lease until July and I plan on renewing one more year. We both have 800+ credit scores and I don’t want to ding them just to see.

The housing market is a whole other topic. Personally I don’t believe houses in AZ will go up in price over the next year, even if they do it will be a tiny percentage. The average sales price in Maricopa county just dropped $20,000 MoM, and inventory is still rising. This is supposed to be the busy season…

I'm reading excuses here. Just go run some numbers with a mortgage company. Share with them you want to do it in a way it won't ding your credit, they'll work with you. Sounds like you're trying to time the market and that will cost you in the long run. If you have to break a lease and pay a fee because you found a house, just do it.

 

[attitude]

I'm reading excuses here. Just go run some numbers with a mortgage company. Share with them you want to do it in a way it won't ding your credit, they'll work with you. Sounds like you're trying to time the market and that will cost you in the long run. If you have to break a lease and pay a fee because you found a house, just do it.

Quite the opposite actually, I’m trying to time my savings and hope the market also cuts me a break. I’m buying next year no matter what. If I were to buy right now a downpayment and closing costs would pretty much wipe me out, lease breaking cost not included lol.

 

[Rivrat]

Cave Creak is beautiful, we just drove up there last weekend so the boys could see the big

All the old people have been bitching about it, I thinks it’s cool. Making all the kids stoked.

I’d love to get pre-approved just to see what we qualify for, I have an idea but you never know until you know. However, we are in a lease until July and I plan on renewing one more year. We both have 800+ credit scores and I don’t want to ding them just to see.

The housing market is a whole other topic. Personally I don’t believe houses in AZ will go up in price over the next year, even if they do it will be a tiny percentage. The average sales price in Maricopa county just dropped $20,000 MoM, and inventory is still rising. This is supposed to be the busy season…

That’s a big IF. Gotta have skin in the game no matter if it’s a shaky economy/time or not. Don’t get left in the dust.

 

[Your ad here]

Quite the opposite actually, I’m trying to time my savings and hope the market also cuts me a break. I’m buying next year no matter what. If I were to buy right now a downpayment and closing costs would pretty much wipe me out, lease breaking cost not included lol.

How do you know down payment and closing cost would wipe you out if you don't even know what you qualify for?

 

[attitude]

How do you know down payment and closing cost would wipe you out if you don't even know what you qualify for?

Multiple gross monthly income by .43% to figure out what your max payment will be, then see what the max mortgage with current interest rates will be within that monthly cost.

 

[Your ad here]

Multiple gross monthly income by .43% to figure out what your max payment will be, then see what the max mortgage with current interest rates will be within that monthly cost.

You are telling yourself you cant. Go see the professional that you will NEED to use and have them tell you NOW that you cant.

 

[attitude]

You are telling yourself you cant. Go see the professional that you will NEED to use and have them tell you NOW that you cant.

I’m sure I could but it would put me in an uncomfortable spot savings wise. I want to have a decent savings after we buy. I’ve always had a nest egg to fall back on that was my “future downpayment”, now that we will be using it I want some cash to replace it.

We are in a great spot to save some cash right now, and I would like to take advantage of it for a while.

Believe me, I’d love to go buy a house this weekend but that would be a massive financial decision based solely on emotion.

 

[NicPaus]

The way the market is. I would be waiting a few months regardless.

Your playing it smart having extra money on hand. If the monthly stays the same once lease is up. Go month to month so you can pull the trigger if the right deal pops up.

 

[ChrisV]

Best way to save is not to have any hobbies.

 

[attitude]

The way the market is. I would be waiting a few months regardless.

Your playing it smart having extra money on hand. If the monthly stays the same once lease is up. Go month to month so you can pull the trigger if the right deal pops up.

What we were told when we signed is after the first year, it would default to month to month. Hopefully, that’s what happens.

 

[attitude]

Best way to save is not to have any hobbies.

My hobbies have been put on the back burner for a while now. Kids are the only ones getting spoiled around here these days.

It also helps living in AZ and away from my friend group, I don’t get sucked into all the random hobbies lol.

 

[ChrisV]

My hobbies have been put on the back burner for a while now. Kids are the only ones getting spoiled around here these days.

It also helps living in AZ and away from my friend group, I don’t get sucked into all the random hobbies lol.

I need to make a thread about spoiling kids. Don’t know what’s the fine line of too spoiled.

 

[Cooter01]

I would call Amex they are offering 4.75

I called them this morning and they told me 3.70 is the best they can do right now. I would love to be at 4.75 again

Matches there website too

 

[Havasu blue label]

I called them this morning and they told me 3.70 is the best they can do right now. I would love to be at 4.75 again

Matches there website too
View attachment 1503005

I just received a email on wed will check for a code

 

[Havasu blue label]

It’s called sit back and watch your money grow

 

[Cooter01]

I just received a email on wed will check for a code

Will do, thank you!

 

[HNL2LHC]

Quite the opposite actually, I’m trying to time my savings and hope the market also cuts me a break. I’m buying next year no matter what. If I were to buy right now a downpayment and closing costs would pretty much wipe me out, lease breaking cost not included lol.

You should run the numbers with a loan officer. Maybe @Tamalewagon could help you. Better to know now rather than later when you are hoping to make it happen. Our Friends waited to the last minute not realizing that they got dinged for the recent job changes And could not buy the house that they wanted. Get all your ducks in a row sooner than later.

 

[attitude]

You should run the numbers with a loan officer. Maybe @Tamalewagon could help you. Better to know now rather than later when you are hoping to make it happen. Our Friends waited to the last minute not realizing that they got dinged for the recent job changes And could not buy the house that they wanted. Get all your ducks in a row sooner than later.

That’s another reason to wait, my fiancée just got a new job and it’s in a different industry. That’s a no-no, from what I’ve heard 12-18 months is what they like to see after a job change to a different industry.

 

[Your ad here]

That’s another reason to wait, my fiancée just got a new job and it’s in a different industry. That’s a no-no, from what I’ve heard 12-18 months is what they like to see after a job change to a different industry.

I only had my $21/hr. job for 3 months and got approve for a home loan... I was only working 35-40 hours a week too. Prior work history showed that I keep employment and that seemed more important to the lender than length of time at the current job.

 

[DC-88]

I’d save all you can even if you have to go full on hermit mode for a while , and get your name on a deed in a good location when possible as long as you want to be in the area for a while. My Dad bought this house brand new in like 1970 for probably 30K . It’s on a half acre lot , not sure why it says it’s bigger on Zillow. About four years later, they sold it and we moved to Casa grande where they bought a smaller house. I know in 2009 you probably couldn’t give away a house in Phoenix but the house that they bought in Casa Grande is still worth less than $375,000 today . I see Phoenix staying steady for quite a while with everything that’s going on there. We’re thinking about trying to get a NNN commercial in the Surprise area because that place is going to absolutely blow up . My first house we bought I even sold my dirt bike to make the closing costs … talk about no cushion .

 

[attitude]

I’d save all you can even if you have to go full on hermit mode for a while , and get your name on a deed in a good location when possible as long as you want to be in the area for a while. My Dad bought this house brand new in like 1970 for probably 30K . It’s on a half acre lot , not sure why it says it’s bigger on Zillow. About four years later, they sold it and we moved to Casa grande where they bought a smaller house. I know in 2009 you probably couldn’t give away a house in Phoenix but the house that they bought in Casa Grande is still worth less than $375,000 today . I see Phoenix staying steady for quite a while with everything that’s going on there. We’re thinking about trying to get a NNN commercial in the Surprise area because that place is going to absolutely blow up . My first house we bought I even sold my dirt bike to make the closing costs … talk about no cushion .
View attachment 1503061

We are really enjoying Queen Creek and want to stay here. There seems to be a ton of growth happening in North Phoenix, tons of room to expand along the 60 too. Kids put a whole new spin on things. Without them it would be easy for me to move a to a cheaper place like Casa Grande or Maricopa, but now that I see them going to a nice school with a bunch of well behaved kids I can’t do it.

My neighbors ride and have been pressuring me to buy another dirt bike, so far I have held off on the pier pressure lol. That’s one of the many reasons I want to have cash left over after closing.

 

[boatnam2]

Most the HYSA accounts have an introductive offer to get your money, i had an American Express HYSA for 2 years, it's been under 4% for a while, pulled it all out and got it in MM at 4.27% then moved it to JEPQ & JEPI on the trump dip, feeling pretty good with it there for now.

 

[Tamalewagon]

That’s another reason to wait, my fiancée just got a new job and it’s in a different industry. That’s a no-no, from what I’ve heard 12-18 months is what they like to see after a job change to a different industry.

It depends on the type of job change and industry you are referring to. If you are going from W2 job to W2 job, there is no issue. You just need one months worth of paystubs. If you are going to be in business for yourself, you need a 1 year history. Hope that insight helps.

 

[zhandfull]

We are really enjoying Queen Creek and want to stay here. There seems to be a ton of growth happening in North Phoenix, tons of room to expand along the 60 too. Kids put a whole new spin on things. Without them it would be easy for me to move a to a cheaper place like Casa Grande or Maricopa, but now that I see them going to a nice school with a bunch of well behaved kids I can’t do it.

My neighbors ride and have been pressuring me to buy another dirt bike, so far I have held off on the pier pressure lol. That’s one of the many reasons I want to have cash left over after closing.

Do you filter out and watch foreclosure/auction properties in your area on Zillow? There’s like 20 listings right now.

https://www.zillow.com/homedetails/17429-E-Chestnut-Dr-Queen-Creek-AZ-85142/52434064_zpid/

Most of these will probably never go to auction would be my guess. But gives you some insight on how the local market is doing.

 

[attitude]

Do you filter out and watch foreclosure/auction properties in your area on Zillow? There’s like 20 listings right now.

https://www.zillow.com/homedetails/17429-E-Chestnut-Dr-Queen-Creek-AZ-85142/52434064_zpid/

Most of these will probably never go to auction would be my guess. But gives you some insight on how the local market is doing.

I browse them but like you said, usually nothing comes of it. However, there are a few short sales right now.

 

[CLdrinker]

My biggest advice for you is do not buy the house you want buy the house you can afford.

For us that’s a house payment that is one weeks pay from one earner not both.

 

[DC-88]

We are really enjoying Queen Creek and want to stay here. There seems to be a ton of growth happening in North Phoenix, tons of room to expand along the 60 too. Kids put a whole new spin on things. Without them it would be easy for me to move a to a cheaper place like Casa Grande or Maricopa, but now that I see them going to a nice school with a bunch of well behaved kids I can’t do it.

My neighbors ride and have been pressuring me to buy another dirt bike, so far I have held off on the pier pressure lol. That’s one of the many reasons I want to have cash left over after closing.

Agree , its just fun to see people succeed and my point was that any good area of PHX is the smart move if you can pull it off and will be there long enough to not have to dump it . If the only thing my Mom had right now in 2025 was that one first house by Indian School rd to sell it could produce enough income while whittling away to set her up in a nice all inclusive home for the rest of her life. If all she had was the Casa Grande house it would be Little Friskies and Old Grand Dad .

 

[NicPaus]

My biggest advice for you is do not buy the house you want buy the house you can afford.

For us that’s a house payment that is one weeks pay from one earner not both.

That's not realistic this day in age unless AZ prices have come way down.

By Me good luck. Avg mortgage in sub par area is now $6500 a month. Torrance is $11k a month.

 

[CLdrinker]

That's not realistic this day in age unless AZ prices have come way down.

By Me good luck. Avg mortgage in sub par area is now $6500 a month. Torrance is $11k a month.

I want to live in Aspen. Apple Valley had to do.

I realize it’s near impossible to follow my advice. But the point is still the same.

Guy at work just got a house and it takes his whole income just for the mortgage. I’m sure that will be fun.

 

[attitude]

That's not realistic this day in age unless AZ prices have come way down.

By Me good luck. Avg mortgage in sub par area is now $6500 a month. Torrance is $11k a month.

Are you assuming I don’t make $200k a year?

…Because I don’t

 

[attitude]

I want to live in Aspen. Apple Valley had to do.

I realize it’s near impossible to follow my advice. But the point is still the same.

Guy at work just got a house and it takes his whole income just for the mortgage. I’m sure that will be fun.

I’d love for that to be a possibility, but unfortunately it’s not a reality. One of the reasons we moved to AZ is so we could afford to raise our kids in a nice area. If we stayed in CA we would be stretching ourselves just for our kids to live in Hemet or Elsinore.

Even in what I considered a very nice neighborhood of Corona we had a bunch of shithead kids walking around. There was a shooting between two teenagers a month after we moved….

If my income can cover all living expenses and hers can go straight into savings I’d be happy.