900k mortgage. 250k HHI.
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Anonymous
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double fed
one child in public school, no more kids. zero debt except for 500 dollar car loan I know at first glance, this seems crazy, but when i run the monthly budget, it seems pretty doable. 4750 dollar PITI (mortgage payment, prop tax, homeowners insurance) 20,833 gross monthly income Back end DTI ends up being roughly 25 percent . 45 percent back end DTI is max that people can get approved for on a conventional loan. is this reasonable to get the house that i really want? |
Anonymous
| What is your net, not gross take home pay? Gross take home kind of irrelevant here. Add utilities that house payment goes up to 5200 / month. I guess if you slash tsp contribution and live on a tight budget it could be done but….. this seems like too big of a bite |
Anonymous
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But what are your savings goals? Do you already have a trust or gift from parents that have your retirement/savings secured?
The way that I look at the mortgage payment is whether I can afford to lose the monthly savings by upping the payment. If I upsize to a bigger house and have to pay an additional $2K+ per mortgage, can I afford to lose that monthly savings with compounding interest over the course of 30 years? When I run the numbers, I'd rather have the money in retirement. |
Anonymous
| Insanity. |
Anonymous
| Doable. Don’t listen to the naysayers who are trying to justify their failing to take advantage of huge leveraged growth in housing market. |
Anonymous
| If you like the house and if that piti fits in your budget go for it. |
Anonymous
| Seems reasonable to me (neither slam dunk nor a stretch) |
Anonymous
| Not crazy it’s fine if no private |
Anonymous
+1 |
Anonymous
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Anonymous
| We have a $1.2M mortgage and around $250k HHI (2 kids no private) |
Anonymous
| Use the 50-30-20 with your net. If you can do all essentials with 50% net income, go for it! It should be doable, but I don't know what you consider essential... we consider private school essential, so we sit very slightly above 50% with 4 kids. |
Anonymous
| How old are you and how much do you have saved for retirement? We are in our 40s with that HHI and 2 in public. I must say I love getting to buy whatever frivolous stuff I want because we kept our mortgage low. We also have 2 million net worth which the low mortgage also helped with. Is your dream house worth having to be tighter in other areas...the answer may be yes for you...and that's fine as well. |
Anonymous
| We can't tell you that. We don't know your spending habits. My husband and I could not do it, but people more frugal than us could definitely do it. We are considering a $650K mortgage on a $250K salary, FWIW. |
Anonymous
| Perfectly fine. |