HHI $250k what would you spend on mortgage?

[Anonymous]

DH $105k, DW $150k. Stable government employment. One kid, 4, and firmly one and done. City has excellent public schools but may go private. Kid is gifted and will likely need asynchronous learning support, private maxes out at $25k/year through high school for the school we’re exploring. We max out retirement and focus on saving and investing, we are going to cash flow college. No debt. Own current home, free and clear, haven’t decided if we will hold or sell before moving. Rental income would be $22K~/year factoring in vacancy/taxes/repairs. But not sure we want to deal with the hassle of being landlords. Homes in area are appreciating and expect that the value will go up significantly over the next 10 years. Taxes are low and manageable and the property is a multi family.

Given that financial picture what would you be comfortable at for a monthly mortgage payment? We’re planning on working another 20 years, and having the mortgage fully paid off at time of retirement. DW will get at least 8% increase a year, DH is likely going to change jobs - less stable but twice as much money - will still receive a small pension from current employment.

[Anonymous]

I would see if you get into the school first. If I had a dime for every “gifted” kid who didn’t get in to their parents’ preferred school, I would be rich.

Maybe your kid is gifted. But there are probably only 15 kinder spots for someone of their gender at the school, and there are more than 15 rich kids to fill them.

[Anonymous]

I would buy a 1.2 M house and put 20%down

[Anonymous]

A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals.

[Anonymous]

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

+1

OP, stay around $500-600k

[Anonymous]

OP it really depends on what you spend elsewhere in your budget and how much you want to save as you go. Figure out what those numbers are and then you'll know what you can spend on a mortgage. If you don't like the result, consider what you are willing to adjust.

[Anonymous]

What are your savings like? How old are you?

I mean, you could buy a $1m house, but you say you prioritize savings and that wouldn't allow you to save much.

Our HHI is slightly higher and our PITI is $2300. It's very comfortable. It would be comfortable up to $3000. I wouldn't want to spend more than that. We also prioritize savings. We have more kids but they go to public school.

[Anonymous]

We make about that and our $3k mortgage payment is about the max I would want. But we have three kids, but public schools.

[Anonymous]

$3k with private school. It will be tough though.

[Anonymous]

Anonymous wrote:I would see if you get into the school first. If I had a dime for every “gifted” kid who didn’t get in to their parents’ preferred school, I would be rich.

Maybe your kid is gifted. But there are probably only 15 kinder spots for someone of their gender at the school, and there are more than 15 rich kids to fill them.

OP. Absolutely fair point. Kid went through early assessment at guidance of preschool and pediatrician.

We already have a slot secured at the private if we want it. We’re exploring as in not sure if the school is a good fit for our family values and deciding if high quality public with investment into external enrichment will be a better fit. We’re lucky in that the least best option is still great. Since private is possibly on the table, including for purpose of budget.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

+1

OP, stay around $500-600k

This, $1 million is insane.

$500 would be my upper limit, 600 maybe. Remember you have college, retirement and activities to fund.

[Anonymous]

I would say around $4k would be fine.

[Anonymous]

Anonymous wrote:I would say around $4k would be fine.

This is the monthly PITI I would be targeting as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

I did this 5 years ago and it's been just fine.