Anyone at $330K HHI have a mortgage that is $4900/month (37% of net pay / 17% of gross)?

[Anonymous]

Anonymous wrote:no worries, it's obvious that grandparents are loaded (500k college fund gift!). they are banking on mad inheritance, otherwise why would he be treading water as a fed while she stays home and racks up debt? it's all play money to them, b/c in the end they'll be able to kick back. I'm guessing DW parents who have money, and DH reluctant to stretch now for bigger house hence she is trying to get a chorus of support that it is reasonable from DCUM.

OP here. We're definitely not banking on an inheritance. Grandparents have made it clear that the college funds and the occasional annual gift are what we can expect to get. We have no clue what their assets are but they live pretty frugally (except for a nice vacation each year), and neither my DH nor I realized that they had much money until they gave us the college money for the kids about 5-8 years ago. We both grew up middle class.

DH and I would do anything to avoid asking the grandparents for money in a pinch because the grandparents would think we were pathetic because we have good educations and should be able to make enough money to support ourselves. So that's not an option -- we really need an emergency fund.

[Anonymous]

We have really similar #s - and cut our spending in order to refinance from a 30 year to a 15 year 2 years ago.

It has been tight - but we knew it would be.

Make sure you understand your expenses -
AMT
property etc
will the Au Pair be able to provide the coverage you need? They are only allowed to work 45 hours

[Anonymous]

We have this exact payment on 350k a year. It's not a stretch but our nanny who does a lot of house hold duties now that the kids are older is 38k a year.

[Anonymous]

Recommendation - Start doing it now and see how it feels.

Take the next 2 months and use the delta between current mortage and what it will be to pay off your credit card debt and up your savings. After 3 months you will know if you can do it or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:no worries, it's obvious that grandparents are loaded (500k college fund gift!). they are banking on mad inheritance, otherwise why would he be treading water as a fed while she stays home and racks up debt? it's all play money to them, b/c in the end they'll be able to kick back. I'm guessing DW parents who have money, and DH reluctant to stretch now for bigger house hence she is trying to get a chorus of support that it is reasonable from DCUM.

OP here. We're definitely not banking on an inheritance. Grandparents have made it clear that the college funds and the occasional annual gift are what we can expect to get. We have no clue what their assets are but they live pretty frugally (except for a nice vacation each year), and neither my DH nor I realized that they had much money until they gave us the college money for the kids about 5-8 years ago. We both grew up middle class.

DH and I would do anything to avoid asking the grandparents for money in a pinch because the grandparents would think we were pathetic because we have good educations and should be able to make enough money to support ourselves. So that's not an option -- we really need an emergency fund.

PP here, then you have to really batten down and get things in line b/c acquiring 10k in credit card debt in your crazy. You should table this house upgrade plan until you have been working a few years, have fat emergency fund, and KNOW you can live within your means.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:no worries, it's obvious that grandparents are loaded (500k college fund gift!). they are banking on mad inheritance, otherwise why would he be treading water as a fed while she stays home and racks up debt? it's all play money to them, b/c in the end they'll be able to kick back. I'm guessing DW parents who have money, and DH reluctant to stretch now for bigger house hence she is trying to get a chorus of support that it is reasonable from DCUM.

OP here. We're definitely not banking on an inheritance. Grandparents have made it clear that the college funds and the occasional annual gift are what we can expect to get. We have no clue what their assets are but they live pretty frugally (except for a nice vacation each year), and neither my DH nor I realized that they had much money until they gave us the college money for the kids about 5-8 years ago. We both grew up middle class.

DH and I would do anything to avoid asking the grandparents for money in a pinch because the grandparents would think we were pathetic because we have good educations and should be able to make enough money to support ourselves. So that's not an option -- we really need an emergency fund.

PP here, then you have to really batten down and get things in line b/c acquiring 10k in credit card debt in your crazy. You should table this house upgrade plan until you have been working a few years, have fat emergency fund, and KNOW you can live within your means.

Why would you need an emergency fund in the case of feds

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:no worries, it's obvious that grandparents are loaded (500k college fund gift!). they are banking on mad inheritance, otherwise why would he be treading water as a fed while she stays home and racks up debt? it's all play money to them, b/c in the end they'll be able to kick back. I'm guessing DW parents who have money, and DH reluctant to stretch now for bigger house hence she is trying to get a chorus of support that it is reasonable from DCUM.

OP here. We're definitely not banking on an inheritance. Grandparents have made it clear that the college funds and the occasional annual gift are what we can expect to get. We have no clue what their assets are but they live pretty frugally (except for a nice vacation each year), and neither my DH nor I realized that they had much money until they gave us the college money for the kids about 5-8 years ago. We both grew up middle class.

DH and I would do anything to avoid asking the grandparents for money in a pinch because the grandparents would think we were pathetic because we have good educations and should be able to make enough money to support ourselves. So that's not an option -- we really need an emergency fund.

PP here, then you have to really batten down and get things in line b/c acquiring 10k in credit card debt in your crazy. You should table this house upgrade plan until you have been working a few years, have fat emergency fund, and KNOW you can live within your means.

Why would you need an emergency fund in the case of feds

Haha, hello govt shutdown. Hello illness that forces one of them home abruptly (and unable to watch kids). It's not just about layoffs.

[Anonymous]

I was the pp at $300k with a $1600 payment going to $2600. Your retirement savings is good to be sure, but The lack of cash is bananas foster. We have about $80k at any given moment in cash savings; you need to get the cc paid off, put away about $100k and then another $20k for the new houses unexpected expenses (there will be some), then - and only then - would I upgrade.

Don't underestimate the awesomeness that comes with not being house poor though too - it's liberating to know that if my washer breaks I just don't save $6 or $7k that month, I save a little less. If things were closer or tighter that would feel waaaay different.

Also consider a remodel, there are posters here that deride it viciously but for $300 or $400 you can do quite a lot and make it exactly to your suiting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:no worries, it's obvious that grandparents are loaded (500k college fund gift!). they are banking on mad inheritance, otherwise why would he be treading water as a fed while she stays home and racks up debt? it's all play money to them, b/c in the end they'll be able to kick back. I'm guessing DW parents who have money, and DH reluctant to stretch now for bigger house hence she is trying to get a chorus of support that it is reasonable from DCUM.

OP here. We're definitely not banking on an inheritance. Grandparents have made it clear that the college funds and the occasional annual gift are what we can expect to get. We have no clue what their assets are but they live pretty frugally (except for a nice vacation each year), and neither my DH nor I realized that they had much money until they gave us the college money for the kids about 5-8 years ago. We both grew up middle class.

DH and I would do anything to avoid asking the grandparents for money in a pinch because the grandparents would think we were pathetic because we have good educations and should be able to make enough money to support ourselves. So that's not an option -- we really need an emergency fund.

PP here, then you have to really batten down and get things in line b/c acquiring 10k in credit card debt in your crazy. You should table this house upgrade plan until you have been working a few years, have fat emergency fund, and KNOW you can live within your means.

Why would you need an emergency fund in the case of feds

Fed spouse has serious illness ... uses up all sick and annual leave and goes on leave without pay ... grandparents have said they're not the emergency fund to cover that according to OP. If Fed spouse has to quit job due to illness or disability there's no assurance of getting a disability retirement and HHI is now cut nearly in half.

That's just one of any number of scenarios that can come into play.

The credit card debt situation alone plus lack of non=retirement investment and savings is a red flag to me.

[Anonymous]

Anonymous wrote:Recommendation - Start doing it now and see how it feels.

Take the next 2 months and use the delta between current mortage and what it will be to pay off your credit card debt and up your savings. After 3 months you will know if you can do it or not.

Very good advice!

[Anonymous]

A pp had the right idea. Start saving the increased mortgage amount right now with your current salary and do it for a MINIMUM of 6 months! Bigger houses have bigger expenses and make sure the entire family is content with lack of ski trips and activities just because you have a bigger back yard.

[Anonymous]

Anonymous wrote:A pp had the right idea. Start saving the increased mortgage amount right now with your current salary and do it for a MINIMUM of 6 months! Bigger houses have bigger expenses and make sure the entire family is content with lack of ski trips and activities just because you have a bigger back yard.

This is a great idea, and not just because it's what we did. We are planning on moving in April and started saving our expected new mortgage payment in a year ago. Now we are used to it, but also have 15 grand to cover moving expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A pp had the right idea. Start saving the increased mortgage amount right now with your current salary and do it for a MINIMUM of 6 months! Bigger houses have bigger expenses and make sure the entire family is content with lack of ski trips and activities just because you have a bigger back yard.

This is a great idea, and not just because it's what we did. We are planning on moving in April and started saving our expected new mortgage payment in a year ago. Now we are used to it, but also have 15 grand to cover moving expenses.

We also used I agent and got a 13k check after closing.

[Anonymous]

Your proposed mortgage is pretty vanilla in these parts at your income level. I have almost exactly the same monthly at just slightly less than your HHI. We still have ample cash on hand...

Really don't fret it and you won't regret it. Just would advise at a high dollar purchase try not to spend it on the far-out burbs, where you might get more square footage but would be vulnerable to larger fluctuations at the high price point.

[Anonymous]

OP, I'm confused. You said your DH makes the max - $157k, but you also said he is a GS15 5. If he is a 15 5, he is not making the max.

http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2014/DCB.pdf