Income $176k — how much would you spend on mortgage now?

[Anonymous]

How much would you be comfortable spending per month on your mortgage if you make $176? One child who will be elementary school age. No debt. I’m asking about monthly payment — not total mortgage amount.

[Anonymous]

$2500/month

[Anonymous]

This is OP. Is the rule still that you shouldn’t spend more than 28 percent of your gross on mortgage and insurance and real estate taxes? That would be $4100, which is a lot.

[Anonymous]

Anonymous wrote:$2500/month

This is OP. I spend more than that now, for my condo!

[Anonymous]

Anonymous wrote:This is OP. Is the rule still that you shouldn’t spend more than 28 percent of your gross on mortgage and insurance and real estate taxes? That would be $4100, which is a lot.

I think using gross makes no sense. I thought it was 25-30% of net.

[Anonymous]

$3000

[Anonymous]

We're in a similar income level and spend $2100. I wouldn't want to spend much more than that honestly. It means we're in a townhouse but it works for our family.

[Anonymous]

Anonymous wrote:$3000

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:$2500/month

This is OP. I spend more than that now, for my condo!

Yikes. What is your net income? How much are you saving for retirement & college? Do you have an emergency fund?

[Anonymous]

Anonymous wrote:

Anonymous wrote:$3000

+1

Agree $3K should be doable.

[Anonymous]

you must be capped GS-15. What is your net home? About half?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is OP. Is the rule still that you shouldn’t spend more than 28 percent of your gross on mortgage and insurance and real estate taxes? That would be $4100, which is a lot.

I think using gross makes no sense. I thought it was 25-30% of net.

The standard has always been tied to gross income, not net income, even if you feel more comfortable using net income (which is reasonable). That said, using gross is totally fine financially, esp if you don’t have other substantial debt.

We had a similar income when we bought and our mortgage was around 2400, which I now recognize as more conservative than was necessary. Our income has increased significantly since we purchased and we could have afforded to stretch more. That said, stretching in DC at this income may get you into a different neighborhood but doesn’t necessarily get you a better house. And I love our neighborhood and our house so I don’t regret not spending more. It’s really nice to not have financial stress and to be able to treat myself to nice frivolities like a really nice hotel on vacation or expensive handbags, or substantial charitable donations to orgs doing work I care about.

[Anonymous]

Anonymous wrote:We're in a similar income level and spend $2100. I wouldn't want to spend much more than that honestly. It means we're in a townhouse but it works for our family.

That you bought in 1998?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're in a similar income level and spend $2100. I wouldn't want to spend much more than that honestly. It means we're in a townhouse but it works for our family.

That you bought in 1998?

Bonus points if you can guess which month.

[Anonymous]

We’re at 240k and 2600 a month. It feels very comfortable. What other expenses do you have OP? Student debt, etc?