If your HHI is 200K, how much house would you buy?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
|
I guess a better question is how big of a mortgage payment would you want?
Sometimes I wonder if I am being too conservative and it is holding us back, but I am really fearful of being house poor. We have a HHI income of 200K. We have an infant in daycare ($1820) and student loans ($500). We put 15% into retirement and $1500 - 2K into savings each month. I feel like we shouldn't get a mortgage payment over $2600 or so, but that is essentially what our rent is and we can still afford to put money into savings every month, so I know we could technically afford more. Do I need to let loose the purse strings? Would you feel comfortable with a higher mortgage payment? We plan on having another kid in three years (but hopefully our incomes will increase by then...or should I say IF our incomes increase we will have another kid). I work for the feds and he works for a large professional organization (both very stable jobs). TIA |
Anonymous
|
I am house poor and it sucks. That said, I don't have daycare or student loan checks to write every month.
HHI of $235k, mortgage of $730k. |
Anonymous
| HHH 200k, mortgage 3500, student loan 800, paid 535k for house with va mortgage so 0 down. Refinancing so payment will be 2500. We can easily make the 3500 payment. Didn't want to be house poor. Many people seem to be house poor around here, just my 2 cents.... Be conservative. Do not spend what the bank or realtor says you can afford. |
Anonymous
Hmm...where is your money going? That is approx. our income and approximately our budget (higher end). What gives? |
Anonymous
OP here, but isn't it not the total mortgage that matters but the payment. For example, I could buy a 500K house w/20% down and my payment would be under 2K or I could buy w/3% down and my payment would be like 3K (I am just making these numbers up). Perhaps she is putting less down than you? Perhaps she has more pre-tax deuctions than you? |
Anonymous
Well, I think that's why people are putting down their mortgage and not their house price. Down payment percentage will factor into your interest rate, and mortgage insurance fees, but should be relatively minor adjustments (on a mortgage that size). You are right about the deductions, but we have quite a few! |
Anonymous
Well, a lot of it goes to the house. It was a bit of a fixer upper, so we've got projects out the ass. Just painting is expensive, even if you do it yourself. A couple of gallons of quality BM paint will set you back nearly $100. We had to buy new window treatments -- even simple blinds are hundreds of dollars for multiple windows. None of the old furniture really worked in the new house... So, we acquire this stuff bit by bit. Two car payments totalling $900 per month, although one of them is paid off within a year. And trying to pay down some consumer CC debt. We sock away money for college 529s and 401k, too, so that affects cash flow. Kid stuff is expensive -- new clothing, new shoes every quarter as they outgrow them (although that seems to be slowing down). Two dogs. They are expensive (grooming, vets, care when you travel, etc.) It adds up. |
Anonymous
| We make 250k and our mortgage payment is $2900 (15 year fixed). I wouldn't want a higher payment. |
Anonymous
Also, out kids are in elemntary school so our child care is about $800 a month total. |
Anonymous
| Our income is about $220,000 and our mortgage is $2500. We don't have any car payments right now, or student loans, so we seem to have enough left for childcare and other things. |
Anonymous
| Putting 15% into a 401k each month seems excessive to me. I would consider dropping the 401k down to 7.5% and adding that money to a potential mortgage payment. That would give you an extra 1250$ per month to add to a mortgage payment. Paying interest on the mortgage will offset the loss of the tax advantage of the money that was going to the 401k. My guess is your options will be much better house wise with a payment of circa 3800$ opposed to 2600. |
Anonymous
OP here: I am a daughter of a financial planner, and I have always heard to save 15% of your income for retirement (20% w/match). Then again, I work for a welfare agency and get to see the opposite end of the spectrum where people didn't save enough for retirement, so I am overly cautious. http://money.cnn.com/2007/01/08/pf/expert/expert.moneymag/index.htm (Although, this article would suggest we are on the right track). Anyhoo, I know I need to continue putting 15% becuase I have to reduce my AGI for student loan purpose (income based loans). BUt yes, you are 100% right that our options would be much better w/a payment of $3800 vs. $2600. I personally would rather just save up the money so we can put more money down on a larger/better house and still keep the mortgage payment low. |
Anonymous
|
I read your article and I think a little bit of critical thinking is useful here. The article discusses someone making 40k a year saving 10% 4k a year. Your hhi is 200k a year. Do you think saving 40k a year is necessary for a reasonable retirement? Not to mention as a fed you will get a pension as well which should be significant. It can be argued housing will beat the stock market but like everything else not guaranteed. Back in 2000 the s&p was well over 1500. Dividend adjusted its 120s up about 13% since then. The housing market is up 50 to 100% since 2000. I think financial planners get paid more nased on how much is invested so I think that would be a direct conflict of interest no pun intended.
The wife and I have never had school loans so cant comment on that. |
Anonymous
What planet are you living on? Except for Feds vested in the old civil service system, there are no defined benefit pension plans for federal government employees. Hasn't been in like 25 years. |
Anonymous
| To 9:57 you should try google before you expose your idiocy. |