What monthly PITI would you be comfortable with?
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Anonymous
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wife and my NET pay every month after all 401k contributions, health insurance, etc... $8400
200 dollar monthly student loan (low interest so we're just taking our time with it) no car payments (2 cars that are 2007 model year with around 80k miles) one child, 6 months old |
Anonymous
| Do you have daycare costs? If so, how much. |
Anonymous
as of now and the near future, no.. mother in law watches our child |
Anonymous
| $2500 PITI |
Anonymous
sounds about right to me too. |
Anonymous
| $5K easy |
Anonymous
| $3k maybe more |
Anonymous
That is totally insane |
Anonymous
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Depends if you have daycare expenses or not, want a 2nd kid or not but I'd do $2,000, I'd stretch to $2,500 for the right place.
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Anonymous
I think 2500 is the conservative amount. Run one of those mortgage estimators to figure out ballpark what is the top of your range that a bank would lend you. Then to find the true number, look at your budget, what do you spend on groceries, gas, utilities (bump this up for the house), cell phone, amd tv/inertnet/home phone. Then add insurance like car, outside life Insurance (we both have 1.2 million, 20 year term policies cheaper than group life at work for the coverage amounts and had to get disability insurance for one of us outside work), and personal property insurance. Assuming you don't want to reduce that spending subtract that from your available net income. Next look at what savings you want to maintain/do outside of 401K. For example your general saving should cover 4-6months salary. You probably want to save something for car replacements, not sure if you put big downpayments, plan to pay in cash, or have a 500-700/month car note etc. Are you going to save for college? Do you have money set aside/will set aside for home repairs and improvements at least for the necessary like new roof, new HVAC, new washer and dryer and desires like eventually updating the bathroom or kitchen. There is some flexibility you just want to make sure you still can save beyond retirement savings with the house and for something like a must do house repair you have cash on hand when needed. I think where people are the most open to trimming is for things like vacation(s), buying furniture, services like cleaning or lawn, and eating out. Last thing is looking at how much you are looking at spending on mortgage PITA and how much you spend in general and run it thru the what if scenarios. What if parents can't watch the child (health reasons, if you have a second it is too much) or one person loses his/her job. Do you feel like between savings and where you can tighten your belt you would be okay? If you cut your spending to the bone and lock in to an expensive mortgage, there may not be much that can be cut should something happen. |
Anonymous
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$2000 max.
We net $13,500, rent is $3K maxing 401K, 2 kids in public, one in college. 2 kids in braces. few extra curricullars 2 car payments (total $900 a month), paying down some debt accumulated while DH was unemployed. about $20K in credit card debt. We do not live a fancy life and we do not feel like we're saving very much every month. do not go about $2K, Life happens and you need to be prepared for changes. |
Anonymous
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I am conservative and I'd say you can go to $3-$3500 if you need to in order to get a good school district.
we have a similar take home, and 1 child in daycare ($1500/mo), and we have been paying $2500 PITI quite easily for years. |
Anonymous
| $3000 |
Anonymous
| $3500 |
Anonymous
This has to be a joke or you're completely disconnected from reality. I net about half of what the OP makes and pay 2K for my PITI. It's not hard at all. I am still able to save money every month. The OP could easily do $3500. If you have a hard time living off 5k after housing and retirement then you're doing it wrong. |