Won the bid on a 900k house and now I feel sick

[Anonymous]

Anonymous wrote:Our HHI is currently about $240-270k, depending on bonuses, which vary, so a low year is $240. The thought of a $900k mortgage scares the ever loving shit out of me. Maybe DH and I spend way too much or put too much in retirement and other savings and still have some student debt (approx $50k left), but we were scared to death about buying our first house (at ages 27 and 29) in the low 300s. We are still in that same house 4 years later and expecting our first and will now add daycare costs, which also worries me. There is no way we could swing a $4000/mo mortgage payment.

I would LOVE to see the monthly budgets of some PPs to find out what we could be doing differently.

Same boat, but our gross is around 440k and our mortgage accross 2 homes is 4k ans childcare at.2500/mo. Though we make double the OP, no way would we take on an 8k morgtage. We like to take vacations, will pay for our kids college, have our house nicely furnished, Dont stress over buying new cars, buy everything in cash, and don't worry if one of us faced a job loss for a period of time. We save enough to give our kids a down payment for a house one day and if catastrophe strikes, we can dip into this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow. This is impressive. We recently began making an HHI of $330,000 per year, and we also have a nanny who works 30 hours/week ($50,000 per year). If we had a bigger house, we could have an au pair work the same hours for a cost of $25,000/year. Our current mortgage is $350,000. I'd love to upgrade to a better house, but have been so reluctant because of all the posts on DCUM. I posted a while back on a separate thread (on the Money and Finance forum) about having a mortgage of $900,000, and most people thought I was crazy.

Can you list out your monthly budget? It would be a huge help. Thx!

I think I remember your post in money forum. I think you had credit card debt and other circumstances that made people think it might not be a good idea.

[Anonymous]

We only have one kid. We are splitting out savings between emergency fund and college fund. We only need a nanny for another year- at that point we plan to put all of the money that had been allocated for daycare into college fund.

Our emergency fund savings are about 150k, so if we need a new roof it or another unexpected expense, it can come from there.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

[Anonymous]

If your budget is tight, why on earth are you spending 38k on a new car? There are cheaper options...

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

[Anonymous]

We have similar HHI and a 625k mortgage (on a 900k house). Also have two kids in daycare and some student loans. We always have money left over each month. For us, the key was budgeting. When you actually look at all of your expenses, you can see what is easy to cut back on (take-out food and Amazon were about 25 percent of our take-home income!) We quickly changed that

[Anonymous]

My budget is not that tight. we are a 440k family with a 4K mortgage and are cash buyers. We have a lot of breathing room.

Anonymous wrote:
If your budget is tight, why on earth are you spending 38k on a new car? There are cheaper options...

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

[Anonymous]

Makes sense then. With only one kid, your expenses are quite low.

Anonymous wrote:We only have one kid. We are splitting out savings between emergency fund and college fund. We only need a nanny for another year- at that point we plan to put all of the money that had been allocated for daycare into college fund.

Our emergency fund savings are about 150k, so if we need a new roof it or another unexpected expense, it can come from there.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

Not to sound like a complete idiot, but how do you take home over $15k a month on that HHI if you max out your retirement accounts? I'm just asking because our HHI is also $280k and our total take home is well less than that. Like $1700/month less. Other than 401k, our only deduction is $233/month in health insurance for the whole family. I'm just curious as to how we are taking home so much less.

[Anonymous]

Anonymous wrote:Makes sense then. With only one kid, your expenses are quite low.

Anonymous wrote:We only have one kid. We are splitting out savings between emergency fund and college fund. We only need a nanny for another year- at that point we plan to put all of the money that had been allocated for daycare into college fund.

Our emergency fund savings are about 150k, so if we need a new roof it or another unexpected expense, it can come from there.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

What about kids college? That alone is a $1000 monthly expense and potentially only puts us at 215k for 2 kids TK share when the projected expense is 175k/per child.

We had our roof done 10k right there.

Our cars too were paid off, one finally kicked the bucket and that was another 38k cash we had to lay down.

I can see how this large mortgage ($900K) works on an HHI of $280K if you have only 1 child. That helps a lot. We have 3 kids, ages 4, 11, and 12. So we still need childcare for the one not yet in school, but at the same time are paying hefty fees for the older two to do travel sports, have braces, attend sleep-away camp, etc. We also budget about $700 month for home repairs (and if that's not needed use it to have our house cleaned). We also budget $600/month for vacations. We also spend about $500/month on insurance: homeowner's, worker's comp for nanny, umbrella policy, auto, personal articles, and life.

[Anonymous]

Anonymous wrote:Two costs to factor into your budget -

Childcare costs will eventually go down marginally but will not disappear once both your kids are in school. Day care gets replaced with before/after care, summer camps (factor in before/after care costs there as well), activities costs for two kids

Landscape costs - including lawn care, tree care, gardening

Hiring outside help is a luxury, family could just cut their own grass.

[Anonymous]

Sure go ahead and stretch yourself too thin just like so many people did in the last housing crisis. And then blame it on the banks and whoever is the current President, lol.

[Anonymous]

We are in VA. If you live in DC, that might explain the difference.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

Not to sound like a complete idiot, but how do you take home over $15k a month on that HHI if you max out your retirement accounts? I'm just asking because our HHI is also $280k and our total take home is well less than that. Like $1700/month less. Other than 401k, our only deduction is $233/month in health insurance for the whole family. I'm just curious as to how we are taking home so much less.

[Anonymous]

Anonymous wrote:
We are in VA. If you live in DC, that might explain the difference.

Thanks, but no, I'm in VA too. We take home $13900/month, so $1100 less than $15k. I guess there are a lot of variables, but it just seems weird.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is doable if you cut costs on things like eating out and vacations. Our HHI is about 280k and we have a 900k mortgage, a full-time nanny, and about 700/month in student loan payments. We still manage to save about 2k/month. But we also brownbag our lunches, make good use of our CostCo membership, etc. Budgeting is key.

Wow, can you list your monthly budget, net, etc? This is really, really impressive.

A bit over 15k/month take home after taxes and 401k

4200 mortgage
4000 nanny (including taxes and breedlove fees)
1000 groceries
800 utilities (electric, cable, cell, water)
700 student loans
300 car gas/maintenance (we own our car outright so no loan)
500 kid's clothing/toys
500 our clothing
500 eating out (usually less than this)
750 misc costs (like car taxes, gifts, kid activities)

That leaves about 2k/month for savings. We put work bonuses, tax refunds and other one-time windfalls directly in savings.

We have a 900k mortgage and our payment with taxes is 5,600!?!