If your HHI is 200K, how much house would you buy?

[Anonymous]

Anonymous wrote:

Anonymous wrote: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

It's not the same. You add the HOA fees and the inevitable housing maintenance costs, and the taxes that keep going up.

But most regular stand alone houses don't have HOA fees right? Or am I missing something?

[Anonymous]

Yes, a SFH can have an HOA. It just depends where the house is located.

[Anonymous]

Our HHI is just under $225k. I'm maxed out on the TSP and the over-50 catch-up. Husband is also maxed out on his retirement savings (401k). $900/month college savings. No debt apart from the mortgage. Our house payment is $3800/month. Mortgage of $580,000.

[Anonymous]

Anonymous wrote:

Anonymous wrote: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

It's not the same. You add the HOA fees and the inevitable housing maintenance costs, and the taxes that keep going up.

Yes, but you also have to take into account the mortgage interest deduction, which means your mortgage costs will be lower than rent of the same dollar amount.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

Are you NUTS?

That's just stupid.

I was thinking the same thing. Our HHI is $350K, mortgage is $650K and we feel house poor. We do pay approx. $1500/month for a pt nanny and about $15,000/year for pt preschool, so maybe that's the difference.

Stop. Did I read this right? You are paying 15k a year for part-time preschool?

NP here. I also pay $15k for preschool (3 hours a morning). This is pretty normal for DC. Where do you live?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

Are you NUTS?

That's just stupid.

I was thinking the same thing. Our HHI is $350K, mortgage is $650K and we feel house poor. We do pay approx. $1500/month for a pt nanny and about $15,000/year for pt preschool, so maybe that's the difference.

Stop. Did I read this right? You are paying 15k a year for part-time preschool?

NP here. I also pay $15k for preschool (3 hours a morning). This is pretty normal for DC. Where do you live?

Hell no that's not normal. I paid $4,500 in Alexandria.

You've been taken to the cleaners. Who the hell pays $15,000 for preschool? I'm so sorry for you.

[Anonymous]

Sorry it was $8k for 3 mornings a week. $15k was everyday from 8:30 to 2:30. Private preschools in DC are pricey.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

Are you NUTS?

That's just stupid.

I was thinking the same thing. Our HHI is $350K, mortgage is $650K and we feel house poor. We do pay approx. $1500/month for a pt nanny and about $15,000/year for pt preschool, so maybe that's the difference.

Stop. Did I read this right? You are paying 15k a year for part-time preschool?

Sorry- that's approx. $15,000 for two kids or around $7500 each, which is the norm for our area (there's nothing less expensive). BUT...there are certainly preschools in the area that charge that much for part-time and they have long waitlits of people not only willing, but eager, to fill them.

[Anonymous]

We are also in Alexandria and pay 4500 for one child. I did not consider that the 15k would be for two. but those who willingly pay 15k for pt preschool for just one are probably not making 200k/year and wondering what size mortgage payment they can swing.

[Anonymous]

Question...when you all talk about your monthly mortage payments, does that include insurance, taxes, hoa fees? When someone posts what their monthly PITI is that what this means...that it includes everything?

Our monthly HHI is $215k, but this includes DH's $20k bonus that we rely on him getting each year, however who knows what could happen. We pay $3,400/month and that includes insurace, taxes, hoa. We have one baby and are hoping to have another in a year or two. Monthly daycare is $1,100. No car payments, but really need to get a new car soon. DH works for home so it saves an a lot on commuting expenses. $300/month for student loans.

Does the above sound reasonable for our HHI? We are def. comfortable with the monthly payment, but with all of our increased expenses (we just bought the house a few months ago) and having to buy lots of furniture, it just feels like we're not saving a dime. Eager for tax time, to see what our refund is like. Based on the above, any idea approximately what our refund could come to?

[Anonymous]

My wife and I are expecting our first child as well as looking for our first home right now. Our HHI is $150K not including bonuses and we're looking at homes in the $650k-700k range with 10% down. Our monthly PITI would be about $3,500 according to our lender. We have no debt and have new-ish (2008 & 2010) cars that are paid off. The only future cost (besides those that come with home ownership) that we foresee is for daycare. Our potential mortgage will be about twice what we're currently paying in rent, but we're both relatively young (late 20s) and have a lot of future income growth, so don't mind being housepoor for now. Also, my brother will be living with us once we buy a house and will be paying about $500 a month, so that will help too.

[Anonymous]

I'll be honest, with a HHI of $150k and a child on the way, I really wouldn't go beyond $550-$600K.

[Anonymous]

Anonymous wrote:My wife and I are expecting our first child as well as looking for our first home right now. Our HHI is $150K not including bonuses and we're looking at homes in the $650k-700k range with 10% down. Our monthly PITI would be about $3,500 according to our lender. We have no debt and have new-ish (2008 & 2010) cars that are paid off. The only future cost (besides those that come with home ownership) that we foresee is for daycare. Our potential mortgage will be about twice what we're currently paying in rent, but we're both relatively young (late 20s) and have a lot of future income growth, so don't mind being housepoor for now. Also, my brother will be living with us once we buy a house and will be paying about $500 a month, so that will help too.

I think this is definitely too much for a $150k income. When this was our income, our budget was $450k and we did not have childcare expenses. I seriously suggest you go over your budget with an expert before buying this much house.

[Anonymous]

$150k is not enough to swing a $600k mortgage. I mean, you *could* do it, but I'd rather pay $450k and have the extra money go to entertainment, meals out, vacations ,etc.

[Anonymous]

Anonymous wrote:My wife and I are expecting our first child as well as looking for our first home right now. Our HHI is $150K not including bonuses and we're looking at homes in the $650k-700k range with 10% down. Our monthly PITI would be about $3,500 according to our lender. We have no debt and have new-ish (2008 & 2010) cars that are paid off. The only future cost (besides those that come with home ownership) that we foresee is for daycare. Our potential mortgage will be about twice what we're currently paying in rent, but we're both relatively young (late 20s) and have a lot of future income growth, so don't mind being housepoor for now. Also, my brother will be living with us once we buy a house and will be paying about $500 a month, so that will help too.

I agree with the other posters; you are buying too much house for your income. You imply your wife works, which means you will have child care expenses - have you looked into this cost yet? You should expect to pay at least $1,000/month. Fast forward 2 years and now you are paying out $2,000/mo when your second is born. Are you saving enough for retirement? What about college savings? Do you plan to vacation?