At what point would a $6000 monthly mortgage make sense?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have an HHI of $500k and when I read your post title, but stomach turned. That's a LOT of money. And the bank wants it every month. Our mortgage is $3500 per month and I think that's too much. I'd try for something that would be doable in case the higher earner lost their job.

That surprises me. With $300k take home, you couldn't swing $72k in piti? $6k a month so well within my comfort range at that income.

It's not we couldn't, it's that I don't want type of monthly obligation.

To each his own, but we pay more than you on less than half your income and I don't mind paying it at all, esp. as it's mostly principal.

[Anonymous]

I've had a $6,500 mtg payment (incl taxes and insurance) for the last 3 years. Our HHI for the first two of those years was less than $220K. It was tight, but very do-able assuming you don't have a ton of other big expenses. i.e., no private school, no crazy child care bills and no huge car or student loan payments. We did it intentionally as we wanted a 15 year mtg.

[Anonymous]

We are at $290k with a $2k mortgage. Id need at least $400 to seriously consider a $6k one. Rather than live in a forever home (I promise you that eventually your ace hardware toilet won't feel different than the Koehler one you wanted), I'd rather amass as much net worth / savings as possible.

[Anonymous]

I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

moving sucks. Your kids change schools and may lose friends. That is stressful. You lose neighbors that you might like. The costs of moving are huge. Realtor commissions, recordation and transfer taxes, capital gains, moving expenses, etc. Monsters.

[Anonymous]

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

yep. You have to realize that incomes normally go up (depending on your age and the career). Inflation happens if nothing else. All while your mtg payment is mostly fixed - taxes will go up but that should be manageable. i.e., if your income is $200K now, just at 3% increases a year, it will be $245K at the end of 6 years. $281K at 5% annual raises. So for me, I figured it might be a bit tight for 3-4 years (it really was not), but things would be much more manageable soon. And I definitely didn't want to spend $100K+ to move again in 5-6 years.

[Anonymous]

At what point would a $6000 monthly mortgage make sense?

For me, when hogs fly out of my ass. But more power to y'all.

[Anonymous]

Ours was $6k (incl taxes and insurance) before we refi'ed it to $5200 but I still keep paying $6k/month to get our principal down. Our HHI was $450k last year so it's not a big hardship for us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

I love that you're "not rich by DCUM standards." Our household income after taxes is $5,200/month. WE aren't rich by DCUM standards by pretty well-off (90K salary, one SAHM parent). You have massively lost perspective if you can pay 7.3K/month and still have plenty of money leftover and you don't consider yourself rich (excuse me, rich by DCUM standards).

OP, I would have to take home 20K/month to be comfortable with a 6K/month mortgage. It's just risky business to spend more than 30% of your take-home on a mortgage. Our take home is $5,200/month and our mortgage is $1,350. It allows us to save a bit for retirement, a bit for college, take one decent vacation a year, give a bit to charity, pay our utilities, keep a 10K emergency fund (replenishing after emergency car and home repairs) and cover food and entertainment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

I love that you're "not rich by DCUM standards." Our household income after taxes is $5,200/month. WE aren't rich by DCUM standards by pretty well-off (90K salary, one SAHM parent). You have massively lost perspective if you can pay 7.3K/month and still have plenty of money leftover and you don't consider yourself rich (excuse me, rich by DCUM standards).

OP, I would have to take home 20K/month to be comfortable with a 6K/month mortgage. It's just risky business to spend more than 30% of your take-home on a mortgage. Our take home is $5,200/month and our mortgage is $1,350. It allows us to save a bit for retirement, a bit for college, take one decent vacation a year, give a bit to charity, pay our utilities, keep a 10K emergency fund (replenishing after emergency car and home repairs) and cover food and entertainment.

I don't think 90k single income is really considered well off or safe even by non DCUM standards.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

I love that you're "not rich by DCUM standards." Our household income after taxes is $5,200/month. WE aren't rich by DCUM standards by pretty well-off (90K salary, one SAHM parent). You have massively lost perspective if you can pay 7.3K/month and still have plenty of money leftover and you don't consider yourself rich (excuse me, rich by DCUM standards).

OP, I would have to take home 20K/month to be comfortable with a 6K/month mortgage. It's just risky business to spend more than 30% of your take-home on a mortgage. Our take home is $5,200/month and our mortgage is $1,350. It allows us to save a bit for retirement, a bit for college, take one decent vacation a year, give a bit to charity, pay our utilities, keep a 10K emergency fund (replenishing after emergency car and home repairs) and cover food and entertainment.

look, the more you make the less relevant those percentages are. so you think you need $14K TAKE HOME that is not for housing? what in the hell would you need to do with that $14K a month? makes no sense.

[Anonymous]

Not the pp but its certainly considered safe in many areas outside of DC and workable here if you're careful. Really if you're able to pay your mortgage, save for retirement and college, and have an emergency fund you're doing fine. The rest is gravy.

[Anonymous]

DC Urban moms is the worst place to ask these questions. We just bought 1.2 with 20% down and will need to repair some things. Our rent is $5,000 a month, so we're thinking it will be a wash with the tax savings.

[Anonymous]

Well think about this 50% of a 50k salary doesn't leave much left for living vs 50% of a 600k salary.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really don't understand where everyone spends all their money. I'm the poster with the $6.5K mtg payment on a normal income and it is fine. I pay about $3K/month to principal, which is damn nice.

I'm with you. We pay $7.3K a month in order to prepay the house before our kids go to college, and we are not at all considered rich by the DCUM's standards. And we have more than enough money left for everything else. I also don't understand what the high-income people are doing with their money. They are probably obsessed with saving $10-20M so their "rich" status can finally be approved by DCUM.

I love that you're "not rich by DCUM standards." Our household income after taxes is $5,200/month. WE aren't rich by DCUM standards by pretty well-off (90K salary, one SAHM parent). You have massively lost perspective if you can pay 7.3K/month and still have plenty of money leftover and you don't consider yourself rich (excuse me, rich by DCUM standards).

OP, I would have to take home 20K/month to be comfortable with a 6K/month mortgage. It's just risky business to spend more than 30% of your take-home on a mortgage. Our take home is $5,200/month and our mortgage is $1,350. It allows us to save a bit for retirement, a bit for college, take one decent vacation a year, give a bit to charity, pay our utilities, keep a 10K emergency fund (replenishing after emergency car and home repairs) and cover food and entertainment.

I don't think 90k single income is really considered well off or safe even by non DCUM standards.

Actually, it is.