We went pretty close to all-in to get this place when we did. I don’t remember what EF we left, but it may have been n=0, since we did have a credit card with no balance and a generous limit, and we had paychecks coming in two weeks later that would cover the bills and put us back in small EF territory. Come to think of it, I know we didn’t touch a Navy Federal savings account, though it had only about $500 at that time. It was a stretch, but we had to come up with 25% down to be able to buy; our was a farm loan that required it, and we couldn’t get a conventional mortgage with no house on the property.
It worked for us and was worth it, but we knew we had some slack. I think we were in a comparable area to yours with comparable taxes, etc. Our mortgage was $39,000 and payments were $337 with no PMI and no insurance (since it was empty land as far as the bank was concerned). If it helps, our closing costs, which were rolled into the mortgage, were $2400. This was 2009. Our interest was probably much higher than yours: 7.5%.
Here’s a thought: Can you move yourselves, everything you have? If so, figure in fuel for your truck. If you don’t have one, figure in a rental truck. Etc. When you’re close to the line, you have to figure in everything so you can plan for it. I’m all for keeping some EF or some sort of substitute. The transmission went out on our big truck as we were heading out for the last trip… That was no fun, and that truck sat for a year because we had other priorities for our money. A few last-minute items that were never meant to be moved in a Jeep got here that way, anyway! (And we borrowed a pickup from a relative soon after). Figure out your backup plan (and be sure you have one, whether it’s money or something else that can do the same things as money) before you decide for s
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