PITI of 4500

[Anonymous]

I currently make 300k and we have a piti of 4500. A job just came up that would mean a reduction in pay to 200k,but my quality of life would be better. It's it crazy to have a 4500k piti on that income?

[Anonymous]

it's tight but totally doable. Go ahead with it.

[Anonymous]

Not enough information.

Other debt?
Spouse?
HHI?
Kids?
Job stability?

[Anonymous]

Anonymous wrote:Not enough information.

Other debt?
Spouse?
HHI?
Kids?
Job stability?

I have $30k in student debt at 2.75%. No other debt except the mortgage. HHI is 300k,but would be 200k with new job. I have 2 kids who are under 5, they go to part time preschool for $700/month. I contribute $300/kid per month to 529s. We have $700k in our 401ks and I have a $70k emergency fund.

My current job stability is up in the air. I think it would be stable for another 2 years, but after that it's a crapshoot. The current job is biglaw. I'd be moving to an in-house job. So it would be less stable than a government job, but maybe more stable than a firm job. It would certainly give me more time at home with my kids.

[Anonymous]

No way! Our HHI is $175k and our PIMI is $2300. We could stretch to a $3000 payment but that would be our limit. We have zero childcare and zero debt.

[Anonymous]

It would be very very tight. I wouldn't risk it, especially with the debt. What would happen if you need a major house repair or new car?

[Anonymous]

Anonymous wrote:No way! Our HHI is $175k and our PIMI is $2300. We could stretch to a $3000 payment but that would be our limit. We have zero childcare and zero debt.

Meant to say no way does that sound affordable.

[Anonymous]

I always heard you should spend no more than 28% of your gross income on your PITI so 29% of 200,000 = 56,000 a year or $4,666 a month. So by that rule of thumb, you'd be OK.

[Anonymous]

You could do it, but you will lose a ton of disposable income (obviously). So that’s vacations, dinners, spas, etc. there’s no way I would skate that thin.

I make 275. My piti 2300. I pay an extra 500 to the mortgage. No debt. And put $700 into each of the following accounts - 2 529s, vacation, general savings, miscellaneous (which is everything from eating out to kids bday party gifts). Losing the extra income plus increasing the mortgage would eliminate savings, vacation and cut my 529 contributions in half. (My kids are 2 and 6, so I’m paying $700/ month in aftercare).

[Anonymous]

Anonymous wrote:You could do it, but you will lose a ton of disposable income (obviously). So that’s vacations, dinners, spas, etc. there’s no way I would skate that thin.

I make 250. My piti 2300. I pay an extra 500 to the mortgage. No debt. And put $700 into each of the following accounts - 2 529s, vacation, general savings, miscellaneous (which is everything from eating out to kids bday party gifts). Losing the extra income plus increasing the mortgage would eliminate savings, vacation and cut my 529 contributions in half. (My kids are 2 and 6, so I’m paying $700/ month in aftercare).

Just to also mention, my emergency fund is 60k and my retirement savings is 720k.

Only highlighting because our finances are almost identical.

[Anonymous]

I don’t think it’s doable without cutting back on retirement, and other savings. But your spouse can maybe get a job now and certainly work more once the kids are in elementary. The kids expenses won’t go down much given programs and summer camp, plus just increased costs as they get older for clothes, food, etc.

[Anonymous]

I’d go for it considering you have a healthy emergency fund.

Can you avoid buying a new car (or used) for quite some time? Can you continue to max out retirement?

I assume you don’t have kids? The childcare issue is the real issue as daycare is 2k and a nanny is 3k plus a month.

[Anonymous]

Anonymous wrote:I’d go for it considering you have a healthy emergency fund.

Can you avoid buying a new car (or used) for quite some time? Can you continue to max out retirement?

I assume you don’t have kids? The childcare issue is the real issue as daycare is 2k and a nanny is 3k plus a month.

We have 2 kids, they go to part time preschool and are watched by relatives the rest of the day. So we have very low childcare costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’d go for it considering you have a healthy emergency fund.

Can you avoid buying a new car (or used) for quite some time? Can you continue to max out retirement?

I assume you don’t have kids? The childcare issue is the real issue as daycare is 2k and a nanny is 3k plus a month.

We have 2 kids, they go to part time preschool and are watched by relatives the rest of the day. So we have very low childcare costs.

Could you still make the mortgage payment if the relatives were no longer available?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’d go for it considering you have a healthy emergency fund.

Can you avoid buying a new car (or used) for quite some time? Can you continue to max out retirement?

I assume you don’t have kids? The childcare issue is the real issue as daycare is 2k and a nanny is 3k plus a month.

We have 2 kids, they go to part time preschool and are watched by relatives the rest of the day. So we have very low childcare costs.

Could you still make the mortgage payment if the relatives were no longer available?

No.