7K Mortgage on a HHI of 500k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our HHI is $460K (includes bonus), there is absolutely no way in hell we would want to do a $7K mortgage, even though I'm sure we would qualify. We max out our 401K, we have one kid out of college and one at community college. No really big expenses besides one car payment. Our mortgage is around $5K (includes taxes and insurance).

Life is expensive and it's only getting more and more expensive. The thought of that $7K albatross around my neck for the next 30 years....no thank you.

What do you spend your money on that 2k a month is going to derail your life; particularly at your age? With a nearly 500k HHI and only a 5K PITI, even after maxing both 401ks you should have more than enough money to save, live and spend more on housing.

You are on the tail end of parenting, your costs should dramatically decrease..

Yeah, this is honestly confusing. You make $460k/year, have no major expenses aside from one car payment, and you can't afford $7k/month? What are you spending that money on?

They said they want kids. A nanny/daycare is easily 3-5k per month. Then there is preschool. The 460k may include bonuses. If their take home is around 20k, I can see how they want to at least give it some serious thought. If you’re UMC it’s easy to spend 7-8k a month on saving in 529s and childcare expenses.

PP was responding to another posted about having kids in college..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our HHI is $460K (includes bonus), there is absolutely no way in hell we would want to do a $7K mortgage, even though I'm sure we would qualify. We max out our 401K, we have one kid out of college and one at community college. No really big expenses besides one car payment. Our mortgage is around $5K (includes taxes and insurance).

Life is expensive and it's only getting more and more expensive. The thought of that $7K albatross around my neck for the next 30 years....no thank you.

What do you spend your money on that 2k a month is going to derail your life; particularly at your age? With a nearly 500k HHI and only a 5K PITI, even after maxing both 401ks you should have more than enough money to save, live and spend more on housing.

You are on the tail end of parenting, your costs should dramatically decrease..

Yeah, this is honestly confusing. You make $460k/year, have no major expenses aside from one car payment, and you can't afford $7k/month? What are you spending that money on?

I didn't say we "couldn't afford it" can you read? Life happens, surely you know that by now. I'd rather have a smaller mortgage and more money in the bank the closer we get to retirement. Observation: It is SO interesting how much the attitude on this forum has changed in the last 2 years which is when housing prices skyrocketed. Two years ago someone with a $460K income and their $7K mortgage would have been crucified! Told they were being financially ignorant. Now that you get a whole lot less house today than you did 2 years ago you find a way to make the narrative fit for your situation - defending your decision to extend and stretch yourself outside of your comfort level.

You do you honey.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you earn $500k I don't think you need to be getting financial advice from an anonymous message board.

That said, how are you getting a $7k mortgage payment on a $1.2 home (unless you're including taxes and insurance)? That's just not possible if you're paying 20% down. If you haven't saved enough for a 20% down payment on your HHI then I'm skeptical you should be making such a large financial commitment.

Good point! Even if you're borrowing $1.2 million your principal and interest would be less than $7K even at today's higher-than-last-year's rates. Are you including taxes and/or homeowners insurance to get to $7K? In that case you can even more easily afford it. I missed the $1.2 million purchase price - buying a house that costs only 2.4x your gross income is very affordable for this area.

Even with taxes and insurance $7K sounds very high for a $1.2M house - unless OP is putting down less than 20%. We purchased a house at $1.21M, 20% down, our all in nut is $5100 and that includes taxes and insurance. granted we got in at the lower rate but I can't believe - and yes maybe I'm wrong - that the rate hike would cause the overall nut to go up by $2K.

Your taxes must be extremely low and you must have locked in a 2%. We borrowed 600 with stellar credit and our all in nut is only a grand less than yours on a 30 year at 4%

20% down. 2.75% /30 year. property taxes are $13K a year. You want to see my statement?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our HHI is $460K (includes bonus), there is absolutely no way in hell we would want to do a $7K mortgage, even though I'm sure we would qualify. We max out our 401K, we have one kid out of college and one at community college. No really big expenses besides one car payment. Our mortgage is around $5K (includes taxes and insurance).

Life is expensive and it's only getting more and more expensive. The thought of that $7K albatross around my neck for the next 30 years....no thank you.

What do you spend your money on that 2k a month is going to derail your life; particularly at your age? With a nearly 500k HHI and only a 5K PITI, even after maxing both 401ks you should have more than enough money to save, live and spend more on housing.

You are on the tail end of parenting, your costs should dramatically decrease..

Yeah, this is honestly confusing. You make $460k/year, have no major expenses aside from one car payment, and you can't afford $7k/month? What are you spending that money on?

I didn't say we "couldn't afford it" can you read? Life happens, surely you know that by now. I'd rather have a smaller mortgage and more money in the bank the closer we get to retirement. Observation: It is SO interesting how much the attitude on this forum has changed in the last 2 years which is when housing prices skyrocketed. Two years ago someone with a $460K income and their $7K mortgage would have been crucified! Told they were being financially ignorant. Now that you get a whole lot less house today than you did 2 years ago you find a way to make the narrative fit for your situation - defending your decision to extend and stretch yourself outside of your comfort level.

You do you honey.

Ok well I did read your post and you said “no way in hell,” not “I’d rather have a slightly smaller mortgage so I can save more cash”

I really don’t think anyone was getting “crucified” on this board for having a $7k payment on a $500k salary 2 years ago. That’s 17% of your salary on housing

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our HHI is $460K (includes bonus), there is absolutely no way in hell we would want to do a $7K mortgage, even though I'm sure we would qualify. We max out our 401K, we have one kid out of college and one at community college. No really big expenses besides one car payment. Our mortgage is around $5K (includes taxes and insurance).

Life is expensive and it's only getting more and more expensive. The thought of that $7K albatross around my neck for the next 30 years....no thank you.

What do you spend your money on that 2k a month is going to derail your life; particularly at your age? With a nearly 500k HHI and only a 5K PITI, even after maxing both 401ks you should have more than enough money to save, live and spend more on housing.

You are on the tail end of parenting, your costs should dramatically decrease..

Yeah, this is honestly confusing. You make $460k/year, have no major expenses aside from one car payment, and you can't afford $7k/month? What are you spending that money on?

I didn't say we "couldn't afford it" can you read? Life happens, surely you know that by now. I'd rather have a smaller mortgage and more money in the bank the closer we get to retirement. Observation: It is SO interesting how much the attitude on this forum has changed in the last 2 years which is when housing prices skyrocketed. Two years ago someone with a $460K income and their $7K mortgage would have been crucified! Told they were being financially ignorant. Now that you get a whole lot less house today than you did 2 years ago you find a way to make the narrative fit for your situation - defending your decision to extend and stretch yourself outside of your comfort level.

You do you honey.

Ok well I did read your post and you said “no way in hell,” not “I’d rather have a slightly smaller mortgage so I can save more cash”

I really don’t think anyone was getting “crucified” on this board for having a $7k payment on a $500k salary 2 years ago. That’s 17% of your salary on housing

The bank would approve a 2 million dollar house for you. So, in their opinion, you can do it. I'm conservative like you, OP. I have two kids in daycare now which is 50k per year combined. I'm on a 5k/month mortgage (15 years) and my income is ~450k. I like to take vacations and buy expensive cars, upgrade my electronics on a whim and go out to expensive restaurants. On 500k with kids and a 7k mortgage, you should be fine. Might have to do Disney in winter and pick between hawaii and europe in summer (not both) but that's about it

[Anonymous]

I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

[Anonymous]

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you earn $500k I don't think you need to be getting financial advice from an anonymous message board.

That said, how are you getting a $7k mortgage payment on a $1.2 home (unless you're including taxes and insurance)? That's just not possible if you're paying 20% down. If you haven't saved enough for a 20% down payment on your HHI then I'm skeptical you should be making such a large financial commitment.

Good point! Even if you're borrowing $1.2 million your principal and interest would be less than $7K even at today's higher-than-last-year's rates. Are you including taxes and/or homeowners insurance to get to $7K? In that case you can even more easily afford it. I missed the $1.2 million purchase price - buying a house that costs only 2.4x your gross income is very affordable for this area.

Even with taxes and insurance $7K sounds very high for a $1.2M house - unless OP is putting down less than 20%. We purchased a house at $1.21M, 20% down, our all in nut is $5100 and that includes taxes and insurance. granted we got in at the lower rate but I can't believe - and yes maybe I'm wrong - that the rate hike would cause the overall nut to go up by $2K.

Your taxes must be extremely low and you must have locked in a 2%. We borrowed 600 with stellar credit and our all in nut is only a grand less than yours on a 30 year at 4%

Dp. My last mortgage was for a MoCo property, 600k, 3.75%, stellar credit. I paid $3550, 30 year mortgage. It's not adding up that you pay 6k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

[Anonymous]

Anonymous wrote:Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

Kudos for having enough to put 50% down.

HHI ~640k and recently bought for 1.3, which was the very top of our budget. Why not more? Aiming for FI in mid 50s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

$250K income with a $1.2M-$1.4M house? You are nuts!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

$250K income with a $1.2M-$1.4M house? You are nuts! [/quote
That's around a $700k mortgage. It's definitely doable, particularly with no kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

$250K income with a $1.2M-$1.4M house? You are nuts!

You are nuts for realizing a 700k mortgage on 250k is incredibly reasonably. No kids helps too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

We can afford over $3M, but looked in the 1.2-1.5 range because, where we live, most of the affluent people are in that range. We wanted a normal neighborhood for our kids and a smaller house footprint. All of the 2M+ houses have like 10k sq ft, massive pools, a pool house... we don't need all of that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I really can't believe the OP's question is really a debate. A $7K mortgage is easily doable on $500K. People on here must have crazy high expenses if they think things will be tight for the OP.

Right..we make about 550k and save 150k+ a year with a 6.5k mortgage. We live a great life. Even if our mortgage was 8k we would still save a good amount.

Thanks, I was really starting to think I was crazy. My spouse and I make $250K combined and are looking to spend $1.2-$1.4 million. We are mid 30s with no kids, and will be putting approximately 40-50% down. We have no family help, no inheritances, etc. We take nice vacations and don't really feel like we deprive ourselves of anything, but things like nice cars don't matter to us (and yes, I know having no kids helps a lot also). But I guess people really don't save anything because it seems like we are outliers in having more than enough for a big down payment. Can't believe our competition is people making $500-$600K; just figured they'd be aiming much higher.

You’ll be totally fine with this. A 700k mortgage at your income is very doable as long as you prioritize saving/investing.

Odds are your income will increase given your ages.