200K salary

[Anonymous]

Hello, i make $200K/year and have $500K put down for a downpayment. I don’t have any debt to pay off. I bring in $12K/month after taxes. $3K for childcare. What should my monthly mortgage payment look like? What’s the max value home you recommend that I can afford. Stable job, 2 young kids. Single mom. Looking at McLean or Vienna.

[Anonymous]

Anonymous wrote:Hello, i make $200K/year and have $500K put down for a downpayment. I don’t have any debt to pay off. I bring in $12K/month after taxes. $3K for childcare. What should my monthly mortgage payment look like? What’s the max value home you recommend that I can afford. Stable job, 2 young kids. Single mom. Looking at McLean or Vienna.

$200k salary bringing home $12k/month after taxes would mean you’re saving $0 for retirement. Do you have some other rental income/trust fund? Because this math isn’t working.

[Anonymous]

Yes, I have separate rental income that I’m saving for retirement. Please focus on the question I asked.

[Anonymous]

You could probably afford $800k to $850k. Assuming you put the entire $500K down.

That child care bill is killer.

[Anonymous]

No more than $4000/month.

[Anonymous]

Sorry, $3000.

[Anonymous]

Anonymous wrote:Yes, I have separate rental income that I’m saving for retirement. Please focus on the question I asked.

Yikes. You’ll get no help with that attitude. I’m not the person who asked but it’s legitimate in trying to help determine a budget. Figure it out yourself.

[Anonymous]

I would not do more than $2K a month as you have utilities, activities, food, clothing, car, insurance, etc.

[Anonymous]

On $200k I’d want it under $3k per month, so maybe $750k house (250k mortgage/500 down)? With 2 young kids you have a decade of childcare and unknowns ahead of you, and it’s just you. That gives you wiggle room if you need it.

[Anonymous]

Anonymous wrote:Yes, I have separate rental income that I’m saving for retirement. Please focus on the question I asked.

You have a rental property, so this is not your first rodeo, no?

[Anonymous]

Anonymous wrote:No more than $4000/month.

This is what I think too.

[Anonymous]

Anonymous wrote:I would not do more than $2K a month as you have utilities, activities, food, clothing, car, insurance, etc.

Come on now.

[Anonymous]

I wouldn’t buy and would rent long-term. Your $500K will conservatively double every 7 years in VOO or similar. Invest your $ and rent something for $3K or less a month. You already own an investment property so there’s no need to buy just to get on the property ladder. The math for your situation clearly shows renting as the winner.

[Anonymous]

This is a bizarre question. How do people with no common sense make so much money? Figure out your expenses and run a mortgage calculator. Look at the numbers it throws out. Decide the level of risk you are comfortable with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would not do more than $2K a month as you have utilities, activities, food, clothing, car, insurance, etc.

Come on now.

She needs to save a few thousand a month, college savings, retirement, etc.