am i insane for considering this? 820k mortgage on a 240k income

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ok here are our stats - close, but not exact -

240K income with a 780K loan @ 30 years/2.25% from last Dec (we got a relationship discount since we have 250K in a brokerage account - would be 2.5 otherwise).

PI: 2983
Tax: 550
Insurance: 100
PITI: 3600

Take Home: 10.5K/mo (after max 401k and 100% of medical/transport, and some daycare costs).

Average budget:
Other housing (sinking fund+maintenance/utilities): 470 (we get about 200/mo in SREC offsets by living in DC)
Daycare (outside the pre-tax FSA): 700
Other kid stuff+college fund: 800
Car maintenance/insurance/gas (metro/included in payroll): 100
Food: 1200
Shopping: 450
Fun (tickets/vacation/etc): 1600
Extra Brokerage/Donations: 1500

Overall, seems fine. We spend about 20K/year on vacations + entertainment and still save (max 401K+Match+Brokerage) = 90K/year,

How will the mortgage feel when you retire?

We're 30. I doubt we'll have a mortgage in 35 years.

[Anonymous]

You’re not insane, the market is insane!

I think it’s doable. I wish we would have bought the more expensive house we were looking at 3 years ago. We went for the more affordable house and regret it, it would have been fine

[Anonymous]

Doable, depends on your priorities.

[Anonymous]

Did OP ever come back and give us more information, like at least the PITI payment? I think we’d all like to hear that.

[Anonymous]

We bought a $660k house with a joint income of $230k, but we still have student loan debt, car payments, and 2 kids under the age of 5. We feel strained but we absolutely LOVE our house.

Also, we bought at the height of the pandemic uncertainty. Went under contract in April 2020. House appraised at $750k in May 2020. Similar houses are going for just under a million now.

It’s all a crapshoot but looking back I’m glad we went for it as if we’d hesitated we’d never be in a house like this.

I would definitely call us house poor though. Our taxes aren’t cheap either-$8k/year.