$1M home on $157k base compensation?-DC
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Anonymous
| I don’t have the expertise on the finances but if you want to live in DC, why would you limit yourself to new construction? New construction is generally less desirable in established areas. |
Anonymous
|
No. Totally bonkers. You are delusional.
Work out how much you can afford, then see what you can get for that money. You don’t start with what you want…. |
Anonymous
| I make about the same and bought a 1 mil house with 220k down and a significantly lower interest rate and my PITI still almost exceeds half my take home. I am house poor, but totally fine with being house poor. |
Anonymous
| Heck no!! |
Anonymous
| This is such an insane idea that I think this might be a troll question. The mortgage is almost your entire take-home pay! The loan amount that you should be looking at is literally half that. |
Anonymous
| Forget about the fuzzy warm feeling of owning. Rent and rent cheaply while investing the down payment so it outpaces the inflation. |
Anonymous
| OP I don't think you would even be approved for a loan with your income. Very rought math, that's about 65% of your net income going just to your mortgage. No way would you qualify, and be happy about that fact! |
Anonymous
+1. No bank is going to make the loan. Just because a developer is offering a certain rate, that doesn't mean whatever bank they're using will give a mortgage to anyone who walks in the door. |
Anonymous
If they have no other debt and decent credit, a bank might. Pretax the loan is JUST under 43%, the highest DTI a bank will approve. It would still be insane to sign on to this. I took out a $900,000 loan, with much lower interest rates, when I had income 3 times that and I felt nervous! |
Anonymous
|
Not a good idea given that income level. The bonuses are not guaranteed so I would not rely too much on them in your calculations. With 157k, after tax I assume monthly take home will be around 8k (I am assuming single and that 10% of your income goes towards 401k). Even at that interest rate, your monthly PITI will be around 6600. That is simply too high of a cost given income (you will only have around 1.5k left every month, and this is before utilities and etc). No way is 1.5k livable amount of money in this area.
Way too risky of a decision. Any emergency and you will be j a tough spot. |
Anonymous
| No OP. Incredibly risky. Buy something cheaper to get on the property ladder. |
Anonymous
| No way. In addition to the mortgage payment, you’ve got outlays for property taxes, homeowner’s insurance, homeowner’s association fees, etc. All those can easily add $12K to $15K per year in expenses on a $1M home. |
Anonymous
| Buy a small condo and live a fuller life instead of buying a big house and live a cash poor life. No fun living one accident away from foreclosure or bankruptcy. |
Anonymous
I have a $270K HHI and I can't even imagine buying a $1MM house right now! |
Anonymous
| No. Crazy. |