Would you spend 700K on a house with 165k HHI?
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Anonymous
| Looking to buy a house with a max budget of 700K with combined HHI of 165K (usually higher with commision averaging 30 to 40k a year but not a guarantee). We would put $250k down (using money saved and from proceeds of selling current house). We have no other debt. Kids are in elementary school. No childcare expenses, cars are paid off and no student loans. After purchasing we would have $100k cash left for emergency fund. I think the mortgage would be between 3000 to 3500 a month which I'm a bit nervous about. Does that sound like too much on our HHI? |
Anonymous
| It would be out of our comfort zone. I'd do $500, maybe $550 and keep more in an emergency fund as you can always pay down principal monthly. We have that income and our mortgage is $2K. I usually pay $2500 a month. I could probably do $3000 but I would not want to have to worry when we need a new car, activities, or other stuff. |
Anonymous
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We bought a 600K house on half that income, but we knew it was going to increase, and we had saved for an an enormous downpayment, so the mortgage was doable. Is the house move-in ready, no big expenditures on systems in the near future? I think you can do it. |
Anonymous
| No way. |
Anonymous
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If you are nervous about it, its probably not worth it. Feeling financially secure has such great benefits to your marriage and family.
Can you either get something smaller or wait a year/two and save up a larger down payment? I assume all your commissions go into savings. You can look to cut your current living expenses in other ways as well. |
Anonymous
| Yes, you can - especially with that downpayment. What is your rent now? |
Anonymous
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I would, only if it's a house we'd be living in for the next 15 years.
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Anonymous
| That would be crazy. House poor. No money for anything else. Maybe food. |
Anonymous
| Op here. Our current mortgage is 1900 but we pay $2400 to pay it down faster. We are looking for a house to stay in and not need to move again until retirement. We don't have a house to buy but have been looking at houses range 550k to 700k but most of the houses are closer to 700k. We are looking for a house that has been updated and definitely would not spend 700k on a house that seemed like it may need significant work in near future. You never know, so we keep $100k for emergency fund. |
Anonymous
| Op again. Our current house will sell for 500k or a bit more. The problem with it is that it is a bit too small and the lot very small. DH works from home so even an extra 400 sq ft would make a difference and we want a nice yard for the kids. |
Anonymous
Why are you trying to pay down your current mortgage if you’re looking to move? |
Anonymous
| Op here. We've been paying extra on our mortgage for several years. Just decided to move in past month. |
Anonymous
| I make 300K and thought 700K was high... So yeah I would not have done it on your salary |
Anonymous
| We did it for the schools and neighborhood. It’s tight but doable with no other debt. |
Anonymous
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Wow you conservative folks. I think it is more than doable.
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