Would you take a $950k mortgage on 300k salary?

[Anonymous]

It's risky but you will at least be better positioned to sell with a rate that high. This forum is filled with people who are trapped in their 2% mortgage that will never be able to sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Have you ever owned a home before? Are you first time buyers? Home ownership requires a lot of maintenance costs. It's not so certain from month to month like renting.

This part is really true. So far this year I have spent 3k on tree trimming, 10k on appliances, 4k on plumbing work … these were planned and necessary expenses too, not even surprises or remodeling for sport. And there are always surprises.

Yep we spent $10k on AC and water heater, $1k plumbing, and now a surprise foundation expense (almost $20k). Home ownership is no joke!

PP not to derail this thread but who are you using for your foundation work / would you recommend them?

[Anonymous]

Yes. You can refinance when the rates drop. Or look into selling to get a larger place. I am sure 950 is not going far.

[Anonymous]

Anonymous wrote:Dual income but both jobs are very secure. Two kids and decent college savings. Aiming to have around $125k saved for each kid for college. Can’t really find a house for much less. No need for expensive travel.

I mean, you could. You jsut don't want to.

[Anonymous]

Anonymous wrote:It's risky but you will at least be better positioned to sell with a rate that high. This forum is filled with people who are trapped in their 2% mortgage that will never be able to sell.

That doesn’t make any sense. People with 2% mortgages are equally able to sell as people with 6% mortgages, they just have more incentive not to. No one is trapped.

[Anonymous]

NO

[Anonymous]

No way. We make 320k and our mortgage is sub 450k

[Anonymous]

Anonymous wrote:No way. We make 320k and our mortgage is sub 450k

You must realize that is insanely conservative. Our HHI is $300k, mortgage $650k, and it’s not tight at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:HHI is $17,500 and PITI would be $7,700 (monthly for both).

No. Hell no.

Agree

[Anonymous]

No. Our HHI is $370K and we have a. $850K mortgage at 2.6%. After maxing out retirement, paying other bills and the random things that seem to pop up all the time- we feel stretched.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's risky but you will at least be better positioned to sell with a rate that high. This forum is filled with people who are trapped in their 2% mortgage that will never be able to sell.

That doesn’t make any sense. People with 2% mortgages are equally able to sell as people with 6% mortgages, they just have more incentive not to. No one is trapped.

Most people with 2% mortgages will downsize if they sell and buy a new house. The jump in rates and increase in prices make it impossible for a lot of people. There are always plenty of posts in this forum of people saying they feel trapped and can’t afford to move.

[Anonymous]

We make about 18000/month after everything and have a mortgage on 960k… 7000 after everything with our low interest rate and high taxes (which have gone up lot in the last few years). We have college saved and honestly it’s fine- stretched a little but kids are almost in college so the cost of things will go down when they leave… but we do pay all bills and have a nice life with that much money. And bonus- we have 1 million in equity now bc we built a house pre covid… but 300k down and it’s appreciated 700k

[Anonymous]

I wouldn't but I am so risk averse I am not a good measuring stick for this

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's risky but you will at least be better positioned to sell with a rate that high. This forum is filled with people who are trapped in their 2% mortgage that will never be able to sell.

That doesn’t make any sense. People with 2% mortgages are equally able to sell as people with 6% mortgages, they just have more incentive not to. No one is trapped.

Most people with 2% mortgages will downsize if they sell and buy a new house. The jump in rates and increase in prices make it impossible for a lot of people. There are always plenty of posts in this forum of people saying they feel trapped and can’t afford to move.

The first post in this chain said OP is better positioned to sell with a $950k mortgage at 6% than if they had a $950k mortgage at 2%. Actually, they’re in the same position to sell, the person with the higher percentage has just been paying way more money in the interim. You’re saying that the person who doesn’t want to give up a lower rate is trapped when they’re actually just making a rational economic decision.

[Anonymous]

Anonymous wrote:It's risky but you will at least be better positioned to sell with a rate that high. This forum is filled with people who are trapped in their 2% mortgage that will never be able to sell.

Huh?