$410k house with DH salary stretching ourselves too thin?

[Anonymous]

The mortgage principle is nearly 4x your income. It is doable, albeit a bit high.

With low interest rates, your mortgage should be in the realm of $2k a month.

I assume you don't want and expect regular nights out on the town, vacations, etc.

However, your student loan debt may be a concern. Could you pay that off by the end of the year?

If you could find something like LeapForce at Home (side research for Google, pays $12-$14/hr) or the like, that might work too. However, 21:55 asked t he hard questions. Be sure you're ok with the answers.

In your shoes, I wouldn't do it. But it's not foolishness of the highest order to do it.

[Anonymous]

No. I have a coworker that did this (same salary, home price) and there was a month where the family was eating rice because they couldn't afford food. It's far beyond your reach. Keep saving and put down a larger down payment. Do you have any downpayment? If you don't have 20% you have to get PMI (insurance) so that will also increase your total monthly costs for the life of the mortgage.

[Anonymous]

ugh, principal. not principle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We found a house we love but my gut says we can't afford it. My DH makes $84k plus bonus (usually 10%) and I SAH. We have 20% for down payment but would have just $10k left in savings. We have tiny amount of student loan debt and no other debt.

My gut says it's too much of a stretch but the numbers say it's do-able.

What do you think?

What's your future HHI income potential?

How many kids? How old? Are you done having kids?

What do you pay in rent now? How is that working out/how does it compare?

Are you willing to go back to work to pick up the slack if needed or go back to work eventually?

My hunch is it would be tight for a while but things would get better as your income increases and housing payments stay stable.

This.
We did it- our income has increased 35% in two years. You'll be fine.

OP--don't listen to this poster. Bad advice behind thinly veiled bragging. Unless your income is going to increase by 35%, you may not be fine.

[Anonymous]

Are you kiddng yourself, OP?

When I was single, I made $90K. I lived in a great TH that cost $165K. My mortgage payments were under $900.

I would NEVER have considered a home in the $400s at that point - NEVER! It's too risky, especially since you stay home.

If you had a job - even one that made $25K - I'd say you could possibly swing it.

But on one salary that's under $100K? no way

[Anonymous]

OP, it's a little higher than I'd be comfortable with, but you need to compare your potential PIMI, plus a cushion for repairs and other homeowner expenses, with your rent now. If it's comparable, and you're not depleting your savings, and you are comfortabel with not moving for at least 5-10 years, then you can seriously consider it.

[Anonymous]

Seems tight to me.

[Anonymous]

Anonymous wrote:OP, it's a little higher than I'd be comfortable with, but you need to compare your potential PIMI, plus a cushion for repairs and other homeowner expenses, with your rent now. If it's comparable, and you're not depleting your savings, and you are comfortabel with not moving for at least 5-10 years, then you can seriously consider it.

Yah, but if something happens to DH's job, things could go bad quicky. If you rent, you can move if DH finds a job elsewhere, stay with family, etc. So that's another consideration.

[Anonymous]

Anonymous wrote:No. I have a coworker that did this (same salary, home price) and there was a month where the family was eating rice because they couldn't afford food. It's far beyond your reach. Keep saving and put down a larger down payment. Do you have any downpayment? If you don't have 20% you have to get PMI (insurance) so that will also increase your total monthly costs for the life of the mortgage.

Um, did you acutally read the OP's post or did you just start freaking out and typing. They have a 20% down payment saved. So, the mortgage would be around $328,000.

OP, I think it is totally doable depending on how frugal you are. People on this board are very conservative. Run the numbers and come up with a realistic budget that takes into consideration monthly home upkeep and repairs.

[Anonymous]

How much are you paying in rent or mortgage now? How much more would you be paying for the mortgage on this house, and where would the money come from? (i.e. is there slack in your budget now or would it hurt?) People's risk tolerance can really vary - some of the PP's might be overly conservative or a little reckless, who knows. But what would that monthly payment really mean to you, including taxes and insurance? And remember that if you're not an owner now, expenses do come up - something always breaks in the first year and it can be expensive.

[Anonymous]

OP, if your husband has the potential to change jobs to increase his income, then YES increasing by 35% is very possible. Also consider a side gig at home for yourself- ETSY shop, etc. would increase the household income.

Seriously, 35% is about 30k- between those two things I just listed that should be very possible. Do the math, and do it again. Be sure.

[Anonymous]

A mort w 336K and 3.75% rate over 30 yrs gets you P+I = $1556.99, and that does NOT include taxes and insurance and escrow. Assuming $7,00o in taxes, the taxes alone add another $750 or so, so your monthly mortg pymt would be about $2300.00. Your hubby makes $7,000 a month before taxes and all the stuff coming out. He brings home maybe $4,500 a month. So, can you live on 4500-2300, or $2,200 every month? For food, gas, utilities, medicval, etc.? Seems kinda tight to me. I wouldn't even consider the bonus in your calculations.

[Anonymous]

Anonymous wrote:OP, if your husband has the potential to change jobs to increase his income, then YES increasing by 35% is very possible. Also consider a side gig at home for yourself- ETSY shop, etc. would increase the household income.

Seriously, 35% is about 30k- between those two things I just listed that should be very possible. Do the math, and do it again. Be sure.

That's a BIG "if." And it's still bad advice to recommend buying a house on the belief that HHI *might* go up. Besides, no lender will give you a mortgage based upon possible changes in jobs (unless, say, DH is a medical resident and soon to become a practicing physician) and a possible ETSY shop. Give me a break.

[Anonymous]

Seems tight to me, too. I would wait until you have a full 6 to 9 mo's of living expenses saved, for an emergency cushion in case something went wrong, your DH lost your job, etc. Home prices and interest rates are not going to sky-rocket up suddenly. If you are otherwise well-qualified, you should still be able to get a very favorable loan (rate-wise) in 1-2 years, and by that time, hopefully your HHI will have increased too. GL.

[Anonymous]

Unless you see significant increases in salary in the future, I'd say it would be tight. My salary is slightly higher than that - about 87k and I'm the primary earner. Our mortgage is very comfortable on our income, but it's much lower and payments are $1300 a month. It would be touch to increase it to more than $1800 without signficiant changes in our lifestyle and without possibly encountering problems when big expenses come up. However, your payments will stay the same for 30 years or so, so if you think your husbands salary will go up in the next year or two, or if you will be working and bringing in more money then go for it and just plan that things will be tight until then.