I never had any particular aspiration to own a house. Homeownership and maintenance always sounded like a lot of work and required a level of commitment that I wasn’t ready for. But when I experienced a paradigm shift in 2020 (much like most around the world), I had to reassess. The decision towards homeownership was fueled by two things: my goal to FIRE by 45 and the trend of exponential rise in rent. That also meant I had to take two big actions: move to a lower cost of living area and get a higher paying job.
And miraculously I managed to do both within a couple of years and here I am with a house in a LCOL area that is quickly becoming MCOL. Here’s where I landed:
Area: East TN
House Price: $375,000
House: 3BR, 2.5BT
Financing: 3% down, 30-year conventional fixed 6.125%
Monthly Payment: ~$2,600 (Principal+Interest+PMI+Escrow)
The monthly mortgage payment actually ended up being much higher than rent (but still within my budget). It isn’t ideal but it’s another adjustment to make in a competitive market. A little bit scary to have a higher fixed expense on a monthly basis but I’m excited to take this on as a challenge!
FIRE on the way 