Finances with big mortgage
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Anonymous
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We bought a new home last year and have a 7k/month payment for the house. We have one kid in preschool and another on the way. Our HHI is 400k and will go up to 5, maybe 6 in a few years but not immediately.
We have no other debt. About 600k in equity in the house via the down payment. 401ks combined have about 500k. We are both 35. My concern is that there’s not tons left over after the mortgage to allocate toward the new baby once they’re born. Grandparents will probably fund a nanny to help us out. We discussed this with them before deciding to get pregnant. Any recommendations on improving our financial situation? |
Anonymous
| Sell the house and get a cheaper house. |
Anonymous
| If you’re familiar with rates right now, selling doesn’t make sense financially. |
Anonymous
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You lay low, pay your mortgage and save for retirement.
If your parents pay for the nanny don’t understand what the problem is? Our salaries are 475k and our nanny is 4k and mortgage is 6k. It stinks but we don’t have any other debt and we earn a good 200k in bonuses we dedicate to savings, vacations, home repairs etc |
Anonymous
| Honestly, you have a spending problem at that HHI. We have a similar HHI at $440k and mortgage payment across two houses and still save $110k outside of retirement. We have three kids in elementary and middle school with expensive activities, summer camps and after school care. |
Anonymous
You didn’t think this through before buying? |
Anonymous
You bought a $2.5M house on a $400k HHI? |
Anonymous
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OP
Wow you suck at math Sell it now how dumb On a 2.5 property if you have a $7000 mortgage per month you are stupid who does this signed owner of more than one home worth more than yours |
Anonymous
Sounds like the mortgage was about 1.9 which is still a lot |
Anonymous
| Grandparents who are funding the nanny now can probably afford funding private school and college funds after the nanny years are over. |
Anonymous
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Should never have bought a house with that large of a mortgage on your income.
Your take-home is likely ~$300K after taxes. But your mortgage is $84K---does that even include insurance and property taxes? |
Anonymous
| We are at a similar HHI and net approximately $20k/month with 2 extra pay periods. After $7k mortgage, you have $13k/mo remaining. Is that not enough? Even if you allocate $6k for childcare, that’s still 7k/mo for basic living expenses. |
Anonymous
I disagree. Selling a home and rebuying is incredibly expensive. Look at what has happened to interest rates. We are in our forever house now but I regret not stretching more with our starter house. We would have had more equity. As long as OP can still save for retirement, pay the bills and maintain the house I don’t think it’s a problem. You even admit they have $220k left to live on. That is plenty especially with the nanny paid for by parents! Why would they not be able to live off even only 100k after the mortgage and no other debt? |
Anonymous
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I mean, you are rich. Just do what you do. you’ll be fine, or your inlaws will bail younout.
Neexttt… |
Anonymous
| Another DCUM humble brag. |