Would you take a $950k mortgage on 300k salary?
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Anonymous
| 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. |
Anonymous
| Not at these rates, no. What’s your net pay and what will the PITI be? |
Anonymous
| You need to look at your total monthly income and subtract expenses then decide if it’s affordable. |
Anonymous
| HHI is $17,500 and PITI would be $7,700 (monthly for both). |
Anonymous
| How is your take home so high? Do you have a full pension and/or not contribute to your 401K? |
Anonymous
It’s actually $16,800. We don’t pay for health insurance premiums so that helps! |
Anonymous
| Hard to say without knowing your current expenses and retirement / college savings balance |
Anonymous
This ^^ is one big part of what needs to be a complete financial picture that is taken into consideration. I tend to be quite conservative about spending, but in this area it can make sense to spend more than is usually advisable when buying a house (the expensive market is what it is); it just kinda depends on all facts and circumstances. |
Anonymous
No. Hell no. |
Anonymous
|
How old are you? How old are your kids? What do you currently have saved? What is your potential for income growth?
Without this information, it is impossible to say. |
Anonymous
| I'd think about potential for income growth and the likely rate of increase for the PITI payment. Are you in an area that has steady tax increases? (Our taxes have gone up 50% in the 8 years since we bought.) What is the condition of the house and the likelihood of insurance premium increases? And how realistic is your current insurance estimate? Our insurance annual premium has doubled in the same timeframe, our monthly has increased about $500 with tax and insurance increases. It's manageable for us but something to think about. Also what is your savings cushion if one of you were to lose your job? |
Anonymous
| If you’re confident that you and your spouse’s careers will progress and your income will grow, then it’s doable. Your budget/cash flow may be tight the next few years. Interest rates are relatively high right now, but you can always refinance when they drop again. |
Anonymous
Are you nuts. My kid was thinking of going instate this year. Buy University of Maryland got super tough and with a 4.7 GPA and 13 APs rejected so no guarantee you will get instate and $125,000 wont even cover in state today if they live on campus. My kid picked the very best OOS school she got some aid at and will cost me $200,000 degree and that is todays prices. You need at very least $250,000 a kid saved. Even today that is only like 62K a year at todays prices and some schools are around 92K so that is in a top school the cost with 30k merit aid . Maybe if I got a 5/5 at a credit union with a rate cap, buy points. and got a very good rate I might do it. But if rates stay high forever or go higher you may have to move by second reset. |
Anonymous
my HHI is 25k and my PITI is around $4,300 and super tight. Look water heaters break, roofs leak, kids need braces, car breaks down, college tuition bills. I cant wait to pay off mortgage. My property tax and home insurance is shooting up every year that is enough of a burden. My homeowners went up $3,000 a year since bought house in 2017 and property taxes up also around $3,000 a year. that monthly payment is up $500 a month in 8 years. That $7,700 will be pushing $9,000 in a ten years. |
Anonymous
| No, I wouldn’t…we’re in this spot and won’t be buying anytime soon. If we tried to buy the house we rent, even with a large down payment, we’d pay 2k more a month in mortgage payment etc than we do on rent..so we’re putting that $ away until things change. |