Would you take a $950k mortgage on 300k salary?

[Anonymous]

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Anonymous wrote:This area is massively overpriced compared to the value of living here. Close to jobs? Sure. Although the current gutting of the Federal government makes that upside less appealing.

Otherwise, paying over a million dollars to live in a falling down dump in an overcrowded swamp full of extremely unpleasant, competitive strivers? No thanks! I’d rather rent!

People who post like this have serious skill issues. The DC area is massive and has many different neighborhoods, amenities, cultures, geographic differences. If you hate it so much it's probably a you thing.

Case in point of one of the unpleasant DC area denizens.

Nobody dreams of retiring to DC. The weather sucks, the soil sucks, and the neighbors are self-important tools.

This entire board is full of people complaining that retirees won't sell their homes here. So are there too many retirees or not enough?

The soil sucks?

Honestly no one is more self important than the person who chimes into someone asking about their preferred location and home price with ewwww why would you want to do that? You clearly think your opinion is the most important.

Also absolutely nobody is jonesing to retire in Philly, PP's example of a different place to live, but that doesn't make it a bad place to live.

Yes, the soil sucks. Why do you think the early settlers had to turn to tobacco?

I think my opinion is clearly more important than anyone who thinks spending over a million bucks for some dump in the DMV is a swell idea. Because that’s just a stupid waste of money.

People really go onto this website and say the absolute weirdest things. Colonizers not being skilled at tending the land three hundred years ago and forcing European crops onto totally different geography might be wildest reason I've seen for anyone not wanting to retire somewhere.

Wow, you’re embarrassing yourself with this assessment. There’s a reason Virginia isn’t considered the breadbasket of America…

As a born and bred Midwesterner, who geeks about retiring to the Midwest/Great Plains (America's bread basket)? I'm legitimately confused is DC a bad place to retire to because of the weather or the lack of wheat? Because you aren't retiring to Nebraska for the fun in the sun.

[Anonymous]

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Anonymous wrote:No way! Our income is btwn 300-350. We pay $2800 monthly. It’s so nice to have the money for home repairs and updates. We can easily afford everything we want to do and save.

So you have a $300k mortgage. Do you live in the DC area? Did you buy 25 years ago? Ideally everyone should have the lowest mortgage possible but these numbers are not normal for thus area.

If you bought in DC (lower property taxes especially if the home sold for a ton more than previously) around five years ago and had 20% down with a sub 3% rate you could have bought a house around a $750k.

m


I am the poster and you are almost exactly right. We bought in Fairfax and had more than 20% down.

It seems crazy now, but there was definitely a sweet spot.

We didn't max out like a lot of people wish they had, which given job uncertainty everywhere feels OK especially since while a small house we love our area. But yeah if you're looking for a $3000/month PITI now even very small fixers will be north of that.

[Anonymous]

I remember having an 18% mortgage. Anything is possible nowadays.

[Anonymous]

Anonymous wrote:Dual income but both jobs are very secure. Two kids and decent college savings. Aiming to have around $125k saved for each kid for college. Can’t really find a house for much less. No need for expensive travel.

950k is peanuts to our HHI. Good luck.

[Anonymous]

Reviving this thread since these numbers are pretty close to what we make. If rates go below 5.5% then we’ve run the numbers and think we can make it work. Might be tight in the beginning but with modest raises in a few years with income closer to $350k, it seems doable. We have a good amount of retirement savings also so that helps us want to take this risk.

[Anonymous]

It's absolutely doable. I was about the same percentage of income, at a lower HHI, when I bought my house and in a few years I was in great shape. If I'd bought something smaller and something I didn't want, to keep my ratios super low, I'd be miserable now.

[Anonymous]

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Anonymous wrote:How is your take home so high? Do you have a full pension and/or not contribute to your 401K?

It’s actually $16,800. We don’t pay for health insurance premiums so that helps!

What happens if your health insurance changes? Our insurance is through DH’s employer. We were lucky to pay no premiums for good insurance for decades. Last November we were informed they were changing things. Suddenly we pay close to $1000 a month just in premiums and have a high deductible so our healthcare costs skyrocketed. Fortunately, we have a low mortgage payment so could absorb it.

[Anonymous]

Some people live their life based on negative “what ifs”. I say go for it and if it’s too much money after 7-8 years then sell. You’ll probably still make a profit!

[Anonymous]

We had HHI of $700k that’s dropping to $500k this year because of job loss due to fed cuts. Plus increased expenses—$2k/month payments for COBRA. Grateful that our PITI is $3200/month so that we can weather this hit without any significant lifestyle changes - e.g. private school, vacations, kid activities.

OP if you move forward make sure you’re still saving for retirement and have healthy emergency savings.

[Anonymous]

How old are you? Maybe if you can get a great deal right now because the DCMV market is so soft. If and when rates drop, you could refinance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How is your take home so high? Do you have a full pension and/or not contribute to your 401K?

It’s actually $16,800. We don’t pay for health insurance premiums so that helps!

Wow wow please tell me where can I get a job where I don't have to pay healthcare premium.

My take home pay is only $5000 after a massive $900 insurance premium for a family of 3

[Anonymous]

My God $950k mortgage!! Can you find a cheaper house?

[Anonymous]

Anonymous wrote:My God $950k mortgage!! Can you find a cheaper house?

When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.

[Anonymous]

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Anonymous wrote:My God $950k mortgage!! Can you find a cheaper house?

When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.

I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My God $950k mortgage!! Can you find a cheaper house?

When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.

I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.

Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.