$330k income - house buying

[Anonymous]

Our income is $325K plus bonuses (around 50-75k). We're looking at spending no more than $1M. Would love to stretch higher, but don't think it would work.

[Anonymous]

Anonymous wrote:Like many others in the DMV, we are two GS-15s with two kids. We have $400k cash, no debt, kids college savings and maxed-out retirement funds. I think $1.4m is doable (that's $7-8k PITI).

What do you think?

We make 498k and carry 3 homes and 6500 in mortgages. I'm perpetually petrified that the 2 will be vacant at the same time and simultaneously an the HVAC will break and the roof will spring a leak. No way in hell would I take on your kind of mortgage. However paying for 6 years full freight for our 2 kids is a top priority after basic food and basic shelter. I'd default on the 2 investments before I stopped our agressive college savings. But you cant default on a primary residence.

[Anonymous]

Full college savings for all kids? (I'm not going to be comfortable until we have 250k per child and maybe, given it's ten years away, that won't be enough.) If so, seems like you budget pretty well. But still. Why 1.4? Seems unnecessary risk I'd much prefer a comfortable mortgage and room for things to come up in life without causing stress.

[Anonymous]

I'd try to keep the mortgage under $750 to get the full tax deduction -- that gives you 1.15M to spend. That's plenty, tbh.

[Anonymous]

Way too high for me. Max $900

[Anonymous]

Anonymous wrote:We are also two GS-15s with two kids and we spent $500k. I would be very uncomfortable spending $1.4m.

Where the heck do you live? Manassas??

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have almost identical stats (HHI $310k), and I think you’re crazy. We bought a $1M house with a PITI at $4000 and I think we spent too much.

I would stick to $800-900. How much regular savings do you have? I'd hope much more than $400K if that is the downpayment.

Considering run down homes in Vienna go for $1M, where are you buying?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have almost identical stats (HHI $310k), and I think you’re crazy. We bought a $1M house with a PITI at $4000 and I think we spent too much.

I would stick to $800-900. How much regular savings do you have? I'd hope much more than $400K if that is the downpayment.

Considering run down homes in Vienna go for $1M, where are you buying?

I’m guessing places like Kingstowne or Reston or Rockville.

[Anonymous]

Anonymous wrote:Full college savings for all kids? (I'm not going to be comfortable until we have 250k per child and maybe, given it's ten years away, that won't be enough.) If so, seems like you budget pretty well. But still. Why 1.4? Seems unnecessary risk I'd much prefer a comfortable mortgage and room for things to come up in life without causing stress.

+1. I don’t understand this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have almost identical stats (HHI $310k), and I think you’re crazy. We bought a $1M house with a PITI at $4000 and I think we spent too much.

I would stick to $800-900. How much regular savings do you have? I'd hope much more than $400K if that is the downpayment.

Considering run down homes in Vienna go for $1M, where are you buying?

I’m guessing places like Kingstowne or Reston or Rockville.

We bought in N Arlington for $1M. Our home is not run down.

[Anonymous]

I’d only spend this much in the following circumstances:

1. A healthy savings account after closing you’re comfortable using for a new roof, AC etc

2. You don’t spend a lot on dining out and clothing

3. You’ve finished having children

4. College accounts have a lot in them. Enough you can take a 5 year break from contributin

5. You aren’t car dependent.

6. You don’t need to catch up on retirement savings

[Anonymous]

Anonymous wrote:Full college savings for all kids? (I'm not going to be comfortable until we have 250k per child and maybe, given it's ten years away, that won't be enough.) If so, seems like you budget pretty well. But still. Why 1.4? Seems unnecessary risk I'd much prefer a comfortable mortgage and room for things to come up in life without causing stress.

Yup. We also prioritize college and our goal is to save 300k per kid, so 600k total. Despite having a higher income than OP an 8k mortgage would not be comparable with my family goals.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have almost identical stats (HHI $310k), and I think you’re crazy. We bought a $1M house with a PITI at $4000 and I think we spent too much.

I would stick to $800-900. How much regular savings do you have? I'd hope much more than $400K if that is the downpayment.

Considering run down homes in Vienna go for $1M, where are you buying?

I’m guessing places like Kingstowne or Reston or Rockville.

We bought in N Arlington for $1M. Our home is not run down.

How old is your house? Old houses ALWAYS have work to be done, nature of the beast.

[Anonymous]

I can't tell from the original post whether OP has already fully funded 401k and 529s or is just planning to do that based on future income. If the former, fine; if the latter, bad idea. Cost of child care, extracurriculars, home upkeep, rainy day fund, etc, will make your mortgage payment a big squeeze.

Since you are both Feds, there is little risk of job loss now. But, at some point you may want to change jobs. That could mean more risk in the future.

All in all, I guess you could afford it- but why? What are you getting for 1.4 that you absolutely need vs 900k which gives you a lot more flexibility?

[Anonymous]

I usually say yes, you can afford it on these threads, but no, do not do this. Too much.