Mortgage payment on 175 HHI

[Anonymous]

Anonymous wrote:184k hhi here with 3250 piti and 1600 in daycare. No issues.

What is your monthly take home? We make slightly less (180) with lower daycare and piti and I find it tighter than I would prefer.

[Anonymous]

Anonymous wrote:Hi Everyone,

Just wondering if we are over extending ourselves on a home that we are planning to build (9 month build time) in the ideal location for us. Mortgage payment would be $3250 PITI (550k home with 27% down).

Wife and I are 28 and no kids (plan to have kids in the near future)
Current Total savings -
Retirement savings - 125k
Non Retirement savings - 150k

Current Monthly savings -
Retirement Savings - $1500 for me / $1250 wife (includes company match for both)
Non-Retirement savings - $3500

Expect a upward trajectory in our HHI. Since we are planning on having kids in the near future, there will be childcare expenses (daycare+food+misc) we have to account for. This is my main concern - will we be able to afford our dream home and start a family in this home. Appreciate the help.

I think that's too much. That would leave you with less than $2000 in discretionary income, which is going to cut it really close when you have to pay for daycare, save for college, and provide extras for your child. You seem to be doing a great job with saving so why would you blow it on an expensive house? People become wealthy by being prudent.

[Anonymous]

Way too high. How much of your income is one person or the other? In 4 years my husband and I have lost jobs 3 times. You must also be prepared for that possibility.

[Anonymous]

Just don't put off having kids because you need money for the perfect house.

[Anonymous]

Good point, but some people are much less likely to get laid off. A federal employee, for instance, has a much lower playoff risk than an it contractor.

We have a similar HHI (on one income) and a PITI of 3600. We aren't big spenders and have no childcare costs, so this isn't a stretch at all. I would say you also need to take into account how your retirement is funded. When I retire, I will have a pension of close to 70k a year. After maxing out the 401k for a long time, we looked at where we stood financially and realized we were saving too much money.

Anonymous wrote:Way too high. How much of your income is one person or the other? In 4 years my husband and I have lost jobs 3 times. You must also be prepared for that possibility.