Is it crazy to borrow 800k mortgage on 300k HHI?

[Anonymous]

looking at a house at 1.25 mil. we can pay down 450k.
also expect our HHI to increase moderately (arond 3% a year).
Age = 40
No other debts
Kids go to public school.

[Anonymous]

this is reasonable. go for it!

[Anonymous]

Yup. Enjoy!

[Anonymous]

Not crazy at all. Totally doable. Congrats!

[Anonymous]

We have a 900k mortgage on a higher income and I think it limits our options and at times I can feel a bit trapped. For example, I definitely have to stay in the high income field I am in. I like my job, but I would also like the flexibility to try something new if it appealed to me. We also have a very large emergency fund to cover the mortgage in case one of us should lose our job.

[Anonymous]

What would the monthly payments be?

We have an HHI of $280k and our mortgage is about $500k, monthly payments are roughly $2300. What you propose would almost double what we are doing. You wouldn't save as much money, and as PP said, it would limit your mobility.

[Anonymous]

We have a 700k mortgage on an income of 250k, so it is definitely doable. (Monthly PITI 4100.) It works for us because we were saving the equivalent of our mortgage before so knew we could live on that monthly budget. We also have a sizable cash reserve for emergencies.

[Anonymous]

$800k mortgage is probably close to $5k PITI per month. If you're making $300k per year, your take home per month should be over $15k. That gives you $10k per month after mortgage to live and invest. Easily doable with kids in public school.

[Anonymous]

Anonymous wrote:$800k mortgage is probably close to $5k PITI per month. If you're making $300k per year, your take home per month should be over $15k. That gives you $10k per month after mortgage to live and invest. Easily doable with kids in public school.

PP ... also, if you get a fixed rate mortgage, remember that those payments will not change much over the years while your HHI will increase. Even 3% per year means abt 10% every 3 years - $2-$3k extra per month, so your cushion should continue to grow over time and you'll be living in a house you enjoy. Meanwhile, it's quite possible that the $1.25mm house will continue to appreciate at or above your income appreciation, which means that it never really gets more affordable for you.

[Anonymous]

Anonymous wrote:We have a 700k mortgage on an income of 250k, so it is definitely doable. (Monthly PITI 4100.) It works for us because we were saving the equivalent of our mortgage before so knew we could live on that monthly budget. We also have a sizable cash reserve for emergencies.

Same here. Very doable.

[Anonymous]

No problem

[Anonymous]

We have that on 280k with piti 3400.

[Anonymous]

Anonymous wrote:We have that on 280k with piti 3400.

800k mortgage

[Anonymous]

What is the monthly payment? What are you other monthly expenditures?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have that on 280k with piti 3400.

800k mortgage

What is your mortgage rate?