What can I afford with 210K joint income and $300K down payment?

[Anonymous]

$900k - $1.1 million depending on your comfort.

[Anonymous]

Anonymous wrote:OP Here. Thanks. It's helpful to hear your thoughts, even though I can also put the numbers into a mortgage calculator. We have very little debt (car paid off, and one of us has about 8K left in student loans; no credit card debt). We currently each put about 10% of our income into our 401K/403b, though we should probably up that amount, I'm told. Retirement is currently our main savings mechanism. Neither of us expect big raises--i.e. we both have jobs we like that are stable, but not huge money-makers. We're planning on public school for elementary (and will choose a location accordingly. Doesn't need to be a great school, but not awful either). Parents are helping out with savings for college (and private high school if we go in that direction), so we're not panicked about that yet.

A few folks have thrown out 900K has a starting point. A 600K mortgage scares me (just seems like such a huge number)! But it's good to hear people say that it's doable. I think that we'll start looking at places below our max price, and then work our way up if we don't find things we like.

Now we just have to decide on the neighborhood! One of us works on the redline; the other in Georgetown. Metro commuting is great. Bus commuting is fine. Car commuting is OK. Liberal-leaning environs, a chance to build some community and proximity to a restaurant or two important.

Thanks for the input!

Maybe Takoma Park? Woodside Park? A little closer in, Shepherd Park or Crestwood? Not sure where on the red line one of you is going.

[Anonymous]

I'll be the voice of of dissent- with a $300k down payment and a $210k income I'd personally look around $600k. Your mortgage would be negligible and you could do so much with the money you'd save. You could pay your house off pretty quick, too. That's just me though.

[Anonymous]

Anonymous wrote:I'll be the voice of of dissent- with a $300k down payment and a $210k income I'd personally look around $600k. Your mortgage would be negligible and you could do so much with the money you'd save. You could pay your house off pretty quick, too. That's just me though.

And you live in West Virginia.
What an insensitive moron!

[Anonymous]

We did a payment of 3500/month PITI on 180K

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'll be the voice of of dissent- with a $300k down payment and a $210k income I'd personally look around $600k. Your mortgage would be negligible and you could do so much with the money you'd save. You could pay your house off pretty quick, too. That's just me though.

And you live in West Virginia.
What an insensitive moron!

Uh, what? She may be overly conservative but not insensitive. Np here and our cute, Metro accessible house in DC isn't worth more than 700k.

[Anonymous]

$900k? Really? That seems high.

If you want to keep your mortgage around $2600, then you can't finance $600k. We financed $370k and we have a $2200 payment (PITI) with an interest rate somewhere in the threes.

We have a HHI of around $150k and we're not trying to spend more than $600k on our next house including 20% down (so financing around $450k or so). I guess maybe I'm too conservative. But I'm trying not to be house poor.

[Anonymous]

OP, I have a $400K mortgage on $100K of income (single mom) and $15K of child support and we do just fine. My mortgage is $2,500/mo. If you aren't comfortable with $600K of mortgage, maybe you could find something around $800K. In some areas, that will buy you quite a bit. In other areas, like my 'hood (North Arl 22207), it buys less.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why not calculate how much of a mortgage would give you a net $2600 payment?

This would be stupid. The tax breaks associated with the mortgage would push this to around $3,500 or so, easily, and be economically equal.

There. Now not stupid and a good starting point.

Not when you factor in repairs which will probably eat up that difference.

[Anonymous]

I would not look over $900k, and me personally, I would be more comfortable at or under $700k.

[Anonymous]

Anonymous wrote:$900k? Really? That seems high.

If you want to keep your mortgage around $2600, then you can't finance $600k. We financed $370k and we have a $2200 payment (PITI) with an interest rate somewhere in the threes.

We have a HHI of around $150k and we're not trying to spend more than $600k on our next house including 20% down (so financing around $450k or so). I guess maybe I'm too conservative. But I'm trying not to be house poor.

Principal and interest on 600k will run about 2,800. That is probably tight for someone making 150k, but should be very comfortable for some making more than 200k.

[Anonymous]

Anonymous wrote:I would not look over $900k, and me personally, I would be more comfortable at or under $700k.

Same here. We have the same HHI as OP. We have $200k for a down payment and are looking at 650 as our max for a move in ready forever home. We do t want to be house poor and we currently spend 2,300/ month on childcare for two preschoolers in nova. No other debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why not calculate how much of a mortgage would give you a net $2600 payment?

This would be stupid. The tax breaks associated with the mortgage would push this to around $3,500 or so, easily, and be economically equal.

There. Now not stupid and a good starting point.

Not when you factor in repairs which will probably eat up that difference.

Yes if you buy old shack

[Anonymous]

If you plan on two kids buy under 800K, under 750 if you can. Check out daycare costs or nanny or beforecare or aftercare or summer camp and all that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why not calculate how much of a mortgage would give you a net $2600 payment?

This would be stupid. The tax breaks associated with the mortgage would push this to around $3,500 or so, easily, and be economically equal.

There. Now not stupid and a good starting point.

New poster here. Can you explain this? How would i calculate this with tax benefits then?