At what point would a $6000 monthly mortgage make sense?

[Anonymous]

We are looking to buy for the first time. We have no property to sell to roll into our down payment. Looking in the $1.1-1.3 range so we can buy one time and be done with moving (therefore skipping the "starter home"). With 20% or a bit more down, that still means a $6k monthly mortgage. Is that crazy?? Our rent is $4400/month.

Thoughts?

[Anonymous]

No, $6,000 is not crazy is you can afford it. You told us your current rent payment but didn't give other relevant details like net worth, income, etc. How can anyone answer your question without those details?

[Anonymous]

Why were you paying $4400 in rent? That sounds crazy and makes me doubt your budgeting ability.

[Anonymous]

It only makes sense if you make $18,000 per month

[Anonymous]

Does the 6K include tax and insurance? don't forget that. Tax on 1.3 mil property won't be small. Don't know if you are dual income, but what would happen if one of you got sick? Can you afford to live on one income for 6 to 8 mo? We can afford more house, but opted not to because of this reason, among others. I don't want a mortgage noose around my neck. I have other things I want to spend money on.

[Anonymous]

What is your take home pay and what are your other large expenses?

[Anonymous]

Anonymous wrote:We are looking to buy for the first time. We have no property to sell to roll into our down payment. Looking in the $1.1-1.3 range so we can buy one time and be done with moving (therefore skipping the "starter home"). With 20% or a bit more down, that still means a $6k monthly mortgage. Is that crazy?? Our rent is $4400/month.

Thoughts?

obviously, it depends on your income. your rent suggests that you are probably not making enough for that kind of mortgage. our mortgage is about 2000 and our rent was 2500. we taxes etc, we are still spending about 500 more on housing than we used to.

[Anonymous]

If you are Oprah or Bill Gates

[Anonymous]

Anonymous wrote:What is your take home pay and what are your other large expenses?

This, along with whether your income and expenses will decrease or increase in the future are the only things that matter.

[Anonymous]

We purchased our forever home for 1.2 million and I really regret it. The stress of a high mortgage is very real and limits our life choices for a long time. In addition, what I wanted in a house with one 18 month old child is very different than what I want now with two elementary school kids. If we had to do it again we would have bought a 1500 to 2000 square foot home first and moved after 6 or 7 years.

[Anonymous]

We have an HHI of $500k and when I read your post title, but stomach turned. That's a LOT of money. And the bank wants it every month. Our mortgage is $3500 per month and I think that's too much. I'd try for something that would be doable in case the higher earner lost their job.

[Anonymous]

Actually, I think if you can swing $4,400 in rent, you can afford $6,000 in a mortgage.

The tax savings alone will net you that extra $1,600 per month. It would be about a wash.

The difference is you'd have to maintain your property, which is expensive. Are you able to do this?

[Anonymous]

For us, we'd need to make $550+ to be comfortable with that number. And not be paying for private school.

[Anonymous]

Anonymous wrote:We have an HHI of $500k and when I read your post title, but stomach turned. That's a LOT of money. And the bank wants it every month. Our mortgage is $3500 per month and I think that's too much. I'd try for something that would be doable in case the higher earner lost their job.

That surprises me. With $300k take home, you couldn't swing $72k in piti? $6k a month so well within my comfort range at that income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have an HHI of $500k and when I read your post title, but stomach turned. That's a LOT of money. And the bank wants it every month. Our mortgage is $3500 per month and I think that's too much. I'd try for something that would be doable in case the higher earner lost their job.

That surprises me. With $300k take home, you couldn't swing $72k in piti? $6k a month so well within my comfort range at that income.

It's not we couldn't, it's that I don't want type of monthly obligation.