Income $176k — how much would you spend on mortgage now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're in a similar income level and spend $2100. I wouldn't want to spend much more than that honestly. It means we're in a townhouse but it works for our family.

That you bought in 1998?

No? We bought in 2017.

Where did you buy a townhouse with an all in of $2,100 in 2017? Flint? That's a hell of a commute.

Different poster but we bought a single family home in Takoma Park in 2019 and have a mortgage payment of $2200. I’m sure I’ve just blown your mind!

Same here for North Kensington.

[Anonymous]

Anonymous wrote:$2500/month

Give me a break. I made $120k and paid $1800/month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$2500/month

Give me a break. I made $120k and paid $1800/month.

HUh? That seems in line with $176K and $2500.

What do you suggest, then?

[Anonymous]

I’ve comfortably paid about $3200 on that salary.

[Anonymous]

When you roll in everything that would be covered in escrow we are at $2300/mo on that HHI and I wouldn’t go much higher.

[Anonymous]

The 28%/33% mortgage to gross income ratio is standard for a reason. If you don't have any other debt, that's a perfectly reasonable amount to pay for housing. Since your home is also a real asset, your PITI isn't just an expenditure, it's also forced savings and investing. Last year, I bought a house on $200k annual earnings with a PITI of $4600. It was $1100/month more than the rent I was paying but it didn't stress my finances and the difference came from shifting my non-retirement savings into the house. I skipped a vacation to do move-in repairs but otherwise spent as freely as I wanted. With each passing year, my mortgage gets more affordable as I pay back the mortgage with inflated dollars and I build up equity and appreciation in the house. Since I bought, the house has already appreciated $100k, a lot more than I could have gained from saving and investing the difference between my rent and new PITI. It's just not the same as spending on a consumable item or a depreciating asset like a car.

[Anonymous]

Anonymous wrote:How much would you be comfortable spending per month on your mortgage if you make $176? One child who will be elementary school age. No debt. I’m asking about monthly payment — not total mortgage amount.

How much do you save per year with 176000 income? And for retirement? Just wondering because we are in the same boat

[Anonymous]

The people saying they make less than 150k and paying 3-4k are lying, dumb, or not telling the full story on their finances.

[Anonymous]

We make 230k per year (two incomes, two kids) and our PITI is $3,100. We rarely vacation or eat out but max out two 401ks and buy a ton of groceries. It feels fine, but not at all like we have money to spare. I don’t think you should go much above 3,000 per month, OP, unless you’re especially frugal in other ways.

[Anonymous]

Anonymous wrote:If you believe your income will go up and you Have no other debts, I’d be fine with 3700 or maybe even 4000.

This assumes simple vacations, used cars, public school for the kids, etc. it is about what you want. There are a lot of people on this forum that believe you should go more than 2500 but then turn around and have 1200 in car payments.

We make $300k with a PITI of $4100 and I think it’s fine but wouldn’t spend more. $4000 at $176 strikes me as insane and I’m routinely lambasted in this board for being way over extended.