would you take out a mortgage that is half of your take home pay?

[Anonymous]

Looking for a sanity check from beloved internet stranges of DCUM:

Potential mortage monthly payment (includes everything&I, ins, HOA, taxes)--3300

Net monthly take home pay (yes, factoring in mortgage interest and tax deductions, I did the math, I am in 24% tax bracket)--6500

So 3300 left per month for everything else

After non negotiable bills (electricity, natural gas, small cable and cell phone bills, car payment [no student loans or cc debt]), I will have 1297.22 per month left for food, gas for the car, clothes, travel, furnishings contributions, and savings contribution.

Will have 6k in bank after closing, or 40k if I take out a residential TSP loan.

Single, no kids.

Thoughts? Is this crazy?

[Anonymous]

What is your salary growth potential?

(But yes most people will say you are crazy.)

[Anonymous]

Anonymous wrote:What is your salary growth potential?

(But yes most people will say you are crazy.)

At whim of presidents of the U.S. ha ha

[Anonymous]

If you mean you are a GS employee and your position tracks at least two grades above where you are, I say go for it. (But, again, I will be in the minority.)

[Anonymous]

Anonymous wrote:If you mean you are a GS employee and your position tracks at least two grades above where you are, I say go for it. (But, again, I will be in the minority.)

no don't think I will be promoted anytime soon.

[Anonymous]

Too tight for me

[Anonymous]

Nope

[Anonymous]

Way too tight for me, we try to keep housing costs at 25-30% of HHI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you mean you are a GS employee and your position tracks at least two grades above where you are, I say go for it. (But, again, I will be in the minority.)

no don't think I will be promoted anytime soon.

Then no way. I did something similar when I was a GS-11, weeks away from becoming a 12… but my position went all the way to a 15 with nearly automatic promotions. It was very tight the first couple of years. If you know it will be tight without change, then no way.

[Anonymous]

I did this - GS employee but have a MUCH larger emergency fund. Sorry, 6k doesn't sound great and TSP loan isn't ideal (fees and has to be paid back).

Did you qualify for that mortgage?

Can you rent out a room or half the home down the line if you ever need to?

[Anonymous]

Too tight.

[Anonymous]

I do that now with two kids and no help. I’m a GS-14.

[Anonymous]

Oh HECK NO! Especially not with what you said here:

"After non negotiable bills (electricity, natural gas, small cable and cell phone bills, car payment [no student loans or cc debt]), I will have 1297.22 per month left for food, gas for the car, clothes, travel, furnishings contributions, and savings contribution.

Will have 6k in bank after closing, or 40k if I take out a residential TSP loan."

When qualifying the lender will want to see your savings account ledger. They like to see a minimum of 2-3 months in reserves. No way will you qualify, and that's a good thing. You're putting yourself in a very tight position.

[Anonymous]

Do you have any means or time of earning a part time salary or side gig if times get tough?
Do you have any chance of increasing your base salary by 15-20K in the next 12 months by moving to a new job?
If so, and assuming you are under 35, so have plenty of upward potential in your career, possibly. It will be incredibly tight though. Are you okay with no vacations, no splurges for the next two years?

[Anonymous]

Anonymous wrote:
So 3300 left per month for everything else

After non negotiable bills (electricity, natural gas, small cable and cell phone bills, car payment [no student loans or cc debt]), I will have 1297.22 per month left

How can those be $2000 a month? Do you have a $1500 car payment or something?