1.3M SFH

[Anonymous]

Troll

[Anonymous]

You can afford a dwelling that costs around 600K - as another poster pointed out - 3x what you make.

So, you should put down around 50% down (300K) on a 600K house. Have you saved for retirement? College for the two kids? Do you have insurance?

[Anonymous]

Anonymous wrote:You can afford a dwelling that costs around 600K - as another poster pointed out - 3x what you make.

So, you should put down around 50% down (300K) on a 600K house. Have you saved for retirement? College for the two kids? Do you have insurance?

Putting down 50% is a waste of money that could be growing elsewhere

[Anonymous]

I don’t have any other debts and I have saved enough for the kids college and retirement. I can definitely afford more than a 600K mortgage. This isn’t making any sense. On a 1.4M house I’d be paying half my monthly income. The rest I can save and use for regular groceries, insurance etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Idk 🤷‍♀️

Dear GOD!!!!! You are an idiot. Preapproved for 1.4 M means that you earn enough to pay the mortgage on an 1.4M house so the bank will give you that amount of loan.

It also assumes that you will not save for emergency, not for school, not for college, not for retirement, not for groceries,childcare, braces, winter coats, milk, toilet paper etc - and pay the entire amount you make for mortgage.

That is what it means. What work do you do that pays you $200K? Because it does not seem like it required a college degree. How did you end up being a single mom of 2 kids?

Not OP, but serious question. Do you have to be so nasty ? OP came to the money forum for advice and you have to call her an idiot, was that really necessary ? Do you act like this in real life ? If so, you really must just be a horrible person.

[Anonymous]

Yes thank you! I simply came for advice. If you have nothing productive or kind to say, just ignore and keep moving along. Wishing you all the best!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Idk 🤷‍♀️

Dear GOD!!!!! You are an idiot. Preapproved for 1.4 M means that you earn enough to pay the mortgage on an 1.4M house so the bank will give you that amount of loan.

It also assumes that you will not save for emergency, not for school, not for college, not for retirement, not for groceries,childcare, braces, winter coats, milk, toilet paper etc - and pay the entire amount you make for mortgage.

That is what it means. What work do you do that pays you $200K? Because it does not seem like it required a college degree. How did you end up being a single mom of 2 kids?

Not OP, but serious question. Do you have to be so nasty ? OP came to the money forum for advice and you have to call her an idiot, was that really necessary ? Do you act like this in real life ? If so, you really must just be a horrible person.

Other than "idiot" part, that PP is not wrong. Just because you are preapproved 1.4M doesn't mean you should borrow that much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Idk 🤷‍♀️

Dear GOD!!!!! You are an idiot. Preapproved for 1.4 M means that you earn enough to pay the mortgage on an 1.4M house so the bank will give you that amount of loan.

It also assumes that you will not save for emergency, not for school, not for college, not for retirement, not for groceries,childcare, braces, winter coats, milk, toilet paper etc - and pay the entire amount you make for mortgage.

That is what it means. What work do you do that pays you $200K? Because it does not seem like it required a college degree. How did you end up being a single mom of 2 kids?

Not OP, but serious question. Do you have to be so nasty ? OP came to the money forum for advice and you have to call her an idiot, was that really necessary ? Do you act like this in real life ? If so, you really must just be a horrible person.

Other than "idiot" part, that PP is not wrong. Just because you are preapproved 1.4M doesn't mean you should borrow that much.

It’s the tone, and the bit about “not going to college.” It’s all unnecessary, a way for PP to feel superior by putting someone else down. Just kind of pathetic, and seen far too often on these non-political forums.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Idk 🤷‍♀️

Dear GOD!!!!! You are an idiot. Preapproved for 1.4 M means that you earn enough to pay the mortgage on an 1.4M house so the bank will give you that amount of loan.

It also assumes that you will not save for emergency, not for school, not for college, not for retirement, not for groceries,childcare, braces, winter coats, milk, toilet paper etc - and pay the entire amount you make for mortgage.

That is what it means. What work do you do that pays you $200K? Because it does not seem like it required a college degree. How did you end up being a single mom of 2 kids?

Not OP, but serious question. Do you have to be so nasty ? OP came to the money forum for advice and you have to call her an idiot, was that really necessary ? Do you act like this in real life ? If so, you really must just be a horrible person.

Other than "idiot" part, that PP is not wrong. Just because you are preapproved 1.4M doesn't mean you should borrow that much.

It’s the tone, and the bit about “not going to college.” It’s all unnecessary, a way for PP to feel superior by putting someone else down. Just kind of pathetic, and seen far too often on these non-political forums.

Try to focus on the message, not how it's delivered. Don't get emotional.

[Anonymous]

The person who made that comment must have been a man(child)!

[Anonymous]

Anonymous wrote:I was pre approved for 1.4 M though

A major determining factor on the loan amount is the DTI ratio. If you don't have debt (looks that way from OP's post), banks would prequalify you for a large amount. As others have said, don't go to the max on the prequalified amount. Play it conservative. The last thing you want is to not be able to pay the mortgage and risk losing your primary home. GL.

[Anonymous]

Thank you.

[Anonymous]

You don’t make enough for a house in that range with two kids, alone.

Heck, neither do I. I make $256K (also a single mom) and can’t afford it either. After deductions (maxing retirement and HSA) my take home pay is $10400/month.

$1200 school for kid
$800+ groceries
$300 car insurance and fuel for paid-off car
$75 Verizon
$250-400 utilities
$1200 property taxes
$330 home insurance (never filed a claim)
$500 private disability insurance
$360 biweekly house cleaners
$300 commuting
$500 (prorated per month) kid summer camp
$600 kid extracurriculars
$2K to retirement
$625 (prorated per month) to backdoor IRA

That’s about $2K/month remaining for healthcare, dentistry, eye care, clothing, shoes, car maintenance, home maintenance and landscaping/grass mowing, sewer, paying accountant for annual taxes, holidays and gifts for others, unexpected expenses and infrequent entertainment.

No vacations.

I bought and paid off a smaller $1M house.

No way could I afford a >$5K mortgage and associated utilities and maintenance on a bigger/more expensive house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define house poor? What’s a safe amount to pay monthly then?

House poor is when you have something of value aka a valuable house, but you stretched yourself too thin so you don't have savings to manage upkeep or do anything because so much of your money is tied up in the house.

At $200k single income with 2 kids honestly $4-5k a month is what you should aim for.

OP is about to become house poor and broke. If she doesn't lose her house. Plus kids will be with Richie Rich peers in McLean and trying to keep up with that lifestyle.

This sounds like a disaster unless OP has rich parents or large child support or other assets she did not mention.

I wouldn't recommend that mortgage to someone with double her income, much less someone earning 200K per year with two children.

Good rule of thumb is that PITI should be no more than 25% of net.

They will be the poor kids in McLean. I’ll give the same advice u did last time you asked: stay in the paid off condo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You can afford a dwelling that costs around 600K - as another poster pointed out - 3x what you make.

So, you should put down around 50% down (300K) on a 600K house. Have you saved for retirement? College for the two kids? Do you have insurance?

Putting down 50% is a waste of money that could be growing elsewhere

That depends. At today’s mortgage rates, it is a guaranteed 6.2% risk-free return over 30 years. Historically that was a pretty good bet until the last 5-10 years of the stock market.