How much was your HHI if you bought a $1M House

[Anonymous]

Anonymous wrote:PP here with around a 400K income and house at 1.2. So 3 x HHI. But we live in a state with no state income tax and sometimes our income is well above 400K. I think 3x HHI is totally doable, but I would not go to 4-5x HHI. That just seems reckless.

Location affects the answer. For reference, our HHI is 500. Mortgage payment is 3,500 but we also spend 3,600 per month on daycare and 3,000 per month on state taxes.

[Anonymous]

We bought 550k while grossing 125k with 5% down, so I am guessing we would be able to swing 1M making 250k.

And before the question starts yes we are able to eat, go on vacation, put 18k in a 401k, 11k in another, max an HSA at 6750k/year so no we are not house poor.

[Anonymous]

We bought at $975k with a $600K mortgage (saved for that down payment for yrs) when our income was $200K.
Now our income is $375K and our primary mortgage is $500K and we bought a second house for $335K with a $235K mortgage.
So now total income $375K, total loan $735K plus utilities on 2 properties.
We have 3 kids but they're in late elementary and one parent telecommutes so childcare costs per yr (travel sports x 2 plus summer camps plus some childcare) = 20K
We max 2 401Ks and and save an additional $80K per year. Maybe we live really cheaply? It doesn't seem so but we're able to do a whole lot on $375K.

[Anonymous]

We are 400 HHI. Rent in Dupont Circle for about 2K/month. No kids.

Have been going back and forth about buying for a year because to own in the location that we rent would require $1.2M+ purchase price or between 4k-5k a month. That makes no sense to us. Also one of our incomes can be volatile.

So instead we just save...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$500k. 15 year mortgage. Wouldn't do it on any less unless you want to be house poor. Million dollar homes aren't for $250k middle class earners. No more than 2x HHI and 15 years. If you can't afford that then you are looking at too much house and may need to check out Haymarket.

Are you trying to bait and trigger the snowflakes earning 100k around here? $250k "middle class!!" The horror.

Not my direct intention, but the middle class and poors around here need a little tough love to understand that nobody is impressed with their meager salaries and they aren't entitled to live in an 8000 sqft mansion with 2 German cars just because they "make six figures". Maybe they could do that on 250k in flyover country, but around here if you live like that on 250k you are going to be living paycheck to paycheck (or worse) so better get used to the taste of Friskies now because that's what you will be eating when the music stops and you end up unemployed/underemployed in your 50s and are forced into an earlier retirement.

Bahaha. Well seeing as how that is true around here I agree. In all seriousness though, COL here is no joke. It's terrible to be working long hours for a job paying 200k and only being able to afford a shitshack that would cost 150k elsewhere.

[Anonymous]

Anonymous wrote:
We are 400 HHI. Rent in Dupont Circle for about 2K/month. No kids.

Have been going back and forth about buying for a year because to own in the location that we rent would require $1.2M+ purchase price or between 4k-5k a month. That makes no sense to us. Also one of our incomes can be volatile.

So instead we just save...

...because you are smart.

[Anonymous]

Anonymous wrote:We bought 550k while grossing 125k with 5% down, so I am guessing we would be able to swing 1M making 250k.

And before the question starts yes we are able to eat, go on vacation, put 18k in a 401k, 11k in another, max an HSA at 6750k/year so no we are not house poor.

Sure, but you'd be a moron.

A 1M jumbo loan with 5% down would have outragrous PMI and taxes. Living on one income and carrying around that kind of debt load is idiotic.