HHI $250k what would you spend on mortgage?

[Anonymous]

Anonymous wrote:A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals.

This “rule of thumb” actually said 3-3.5 times. It was based on 14-16% interest rates from the early to mid 1980s. The old rule of thumb was replaced two decades ago with 28-33% of pretax income.

[Anonymous]

260k income here and have a $4500 mortgage payment.

pretty comfortable.

*have one child in public elementary school so no preschool/private tuition

[Anonymous]

Anonymous wrote:OP, you say you own current home free and clear, but you don’t seem to be accounting for the cash that would freed up when you sell that house, I take it you aren’t planning on Selling current home?

We don’t need to sell the home to purchase the next home, and are considering renting it out. Large duplex and can create positive rental income even after accounting for vacancy/taxes/maintenance. Not factoring that income, because not sure we want the hassle of being landlords.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals.

This “rule of thumb” actually said 3-3.5 times. It was based on 14-16% interest rates from the early to mid 1980s. The old rule of thumb was replaced two decades ago with 28-33% of pretax income.

this is a little absurd.. would mean a 6k mortgage (28 percent) at 260k income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals.

This “rule of thumb” actually said 3-3.5 times. It was based on 14-16% interest rates from the early to mid 1980s. The old rule of thumb was replaced two decades ago with 28-33% of pretax income.

this is a little absurd.. would mean a 6k mortgage (28 percent) at 260k income.

i agree this seems high. But, also agree that I have heard that rule. You would maybe feel better with $4,000 which is completely do-able.

[Anonymous]

OP, you sound smart and financially smart. I would think you can calculate on your own. Also, it depends on how ambitious you are for college, would you pay 100k per year plus fees? Or woild kid spare you and pick to study in Canada or another cheaper locale.

[Anonymous]

$2,600-$3,000

[Anonymous]

340HHI gross, 2 kids in highly rated Public schools, paying extra for outside classes, 5K a month payment (mortgage plus taxes) just cutting it, not much left for house improvements or exotic vacations, but also own a second rental property (still mortgage) have 2.5 million in retirement accounts. With one kid only, you should be able to manage rental property and let the equity there grow. Plenty of ppty mgmt companies out there too.

[Anonymous]

Anonymous wrote:A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals.

Not a good rule. Rule of thumb (and brain) now is home payment should be max 1/3 of income

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

+1

OP, stay around $500-600k

This, $1 million is insane.

$500 would be my upper limit, 600 maybe. Remember you have college, retirement and activities to fund.

This will keep the payment manageable but the only think OP can buy at that price is a dump. Even out in the exburbs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

+1

OP, stay around $500-600k

This, $1 million is insane.

$500 would be my upper limit, 600 maybe. Remember you have college, retirement and activities to fund.

This will keep the payment manageable but the only think OP can buy at that price is a dump. Even out in the exburbs.

We bought a dump. Better to have a dump and be comfortable than stress over money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would buy a 1.2 M house and put 20%down

Way too high. We make $275k, plan to send one kid to private, and our $4k payment ($660k mortgage @ 4.25%) is the max we are comfortable with.

I did this 5 years ago and it's been just fine.

You did which 5 years ago? Not clear which post you are responding to.

There's a little button on the top left that says click to show earlier quotes.

The interest rates were lower but I bought a house for $1.2 million, put 20% down 5 years ago and there haven't been any money issues with our $250k HHI

[Anonymous]

OP doesn’t live around here.

[Anonymous]

3.5k mortgage payment max. Otherwise, you’re begging to be house poor with all the other expenses if you want a comfortable retirement.

[Anonymous]

We did 1M on that income, but or mortgage rate is 2.5%. we would do more like 750k or less today.