900k mortgage. 250k HHI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's so interesting seeing everyone's threshold and where they place value. We wouldn't touch that with a ten foot pole because we place value on other things, so with a 325 HHI, we paid 480 for a TH (TBF-2014 so not current market prices & a 15 year loan), have both cars paid off, max out 401k's and college savings, then spend elsewhere.

As long you're comfortable with the ramifications of what you choose, you do you.

I share your view (actually we are even more conservative, paid $500k with a HHI of $500k at the time, which is now $700k) but we both will probably have a lower HHI as a result.

I think this is reckless and spendthrift. At an income of $500K, you should be living under a bridge just to play it safe. You never know if one spouse could lose their job or someone could get sick. Oh and also don't forget to go barefoot at $500K - shoes are only for 7-figure earners.

[Anonymous]

At that salary (gross), I wouldn’t go above 500,000.

[Anonymous]

Anonymous wrote:Shocked by how many people think this is ok. We make $380k and our mortgage is $3,900/month and I def would not be comfortable with it being any higher than that.

We make 300k, our mortgage is $4100, we are maxing out retirement, saving more on the side and don't feel pinched at all.

Of course I have all my wrinkles and gray hair and drive a beat up car....

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have a $1.2M mortgage and around $250k HHI (2 kids no private)

Are you maxing out your kids’ 529s and your 401ks each month?

529s are almost fully funded (don't want to overfund). For 401K, maxing to match level. Don't want too much in those due to restrictions. I'm not saying it's even with the $1.2M but it's manageable.

That's about the dumbest thing I've ever heard. You need a remedial course in money management.

It's called planning. I've made assumptions that say I want to fund to 80% of future cost of 4 year private plus grad school (adjusting for things like partial scholarship, in-state school, doesn't go to grad school, etc). Well, if I grossly overfund, I can either:
* Give money to potential grandkids or relatives
* Withdraw it with penalty

So I effectively lose use of the funds if I overfund. For 401k, earliest penalty free withdrawl is 59 1/2. I'm retiring at 53 so 6 1/2 years where I can't use those funds. So I need funds NOT in a retirement account to retire. Sure, get max matching to get 100% return the first year, but don't over fund. If you just max 401K to live large in retirement and don't retire early, there's nothing wrong with that but neither is there something wrong with planning to have funds before 59 1/2.

This is absolutely not true.

Please add facts to support your response.

Seriously? Roth conversions or substantially equal periodic payments. Or, if you can bear to work aor another 18 months, the Rule of 55.

I'm sorry your Google is broken, by the way. I hope it gets fixed soon.

[Anonymous]

Anonymous wrote:I know plenty of 300-400 HHI getting 1.5mn mortgage. This is the price to pay for a livable house in this area in today’s market. Stop shaming people for prioritizing good public schools and a house suitable for two working from home parents and often virtual learning kids

HA! Now I've heard it all. Those poor people living in 1.5M homes have been shamed and victimized. I've really heard it all. Thanks, DCUM!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's so interesting seeing everyone's threshold and where they place value. We wouldn't touch that with a ten foot pole because we place value on other things, so with a 325 HHI, we paid 480 for a TH (TBF-2014 so not current market prices & a 15 year loan), have both cars paid off, max out 401k's and college savings, then spend elsewhere.

As long you're comfortable with the ramifications of what you choose, you do you.

I share your view (actually we are even more conservative, paid $500k with a HHI of $500k at the time, which is now $700k) but we both will probably have a lower HHI as a result.

I think this is reckless and spendthrift. At an income of $500K, you should be living under a bridge just to play it safe. You never know if one spouse could lose their job or someone could get sick. Oh and also don't forget to go barefoot at $500K - shoes are only for 7-figure earners.

This tells me that you have never been sick or lost a job. Congrats. I myself have received a life changing diagnosis and I can tell you that 99% of people are just not prepared for it. It changes everything. Most people live like they're invincible. God how things change when the rug is pulled out from under you. It's terrifying and really puts excess spending into perspective. I think because this generation has never really suffered (think the greatest generation) they live like they have nothing to lose and spend, spend, spend.

[Anonymous]

Anonymous wrote:I know plenty of 300-400 HHI getting 1.5mn mortgage. This is the price to pay for a livable house in this area in today’s market. Stop shaming people for prioritizing good public schools and a house suitable for two working from home parents and often virtual learning kids

Oh, come on. Are you seriously contending that is is necessary to spend $1.5m to get a *liveable* house?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know plenty of 300-400 HHI getting 1.5mn mortgage. This is the price to pay for a livable house in this area in today’s market. Stop shaming people for prioritizing good public schools and a house suitable for two working from home parents and often virtual learning kids

Oh, come on. Are you seriously contending that is is necessary to spend $1.5m to get a *liveable* house?

Look at this barely livable house in the suburb, with everything needing upgrades: floors, kitchen, bathrooms, windows, doors etc. listed for 1.5 and sold for 1.7. Just an example of the crazy price for a livable house in good school area in today’s market. People just HAVE TO take on a big mortgage to survive.

https://www.redfin.com/VA/McLean/926-Ridge-Dr-22101/home/9279221

[Anonymous]

Anonymous wrote:New to the thread, OP can 100% comfortably afford this amount and still save plenty, even with kids.

I am shocked at how many people are saying stuff like "I make $500k and only buy 600k houses" etc. Sure, if you live in a super low COL place and 600k can get you a nice house, then why not. But in the DMV, 1.5m house is almost near tear down condition. You have to pay if you want a decent house to live in.

OP, you can easily afford it, this is not a stretch by any means. Sure, you won't be dining at Michelin restaurants very often, or have fancy overseas trips that much, or buy designer items at Tysons Galleria, but you can afford a comfortable life with a 900k mortgage and that HHI.

This is false, no matter how much work "almost" and "near" are doing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know plenty of 300-400 HHI getting 1.5mn mortgage. This is the price to pay for a livable house in this area in today’s market. Stop shaming people for prioritizing good public schools and a house suitable for two working from home parents and often virtual learning kids

Oh, come on. Are you seriously contending that is is necessary to spend $1.5m to get a *liveable* house?

Look at this barely livable house in the suburb, with everything needing upgrades: floors, kitchen, bathrooms, windows, doors etc. listed for 1.5 and sold for 1.7. Just an example of the crazy price for a livable house in good school area in today’s market. People just HAVE TO take on a big mortgage to survive.

https://www.redfin.com/VA/McLean/926-Ridge-Dr-22101/home/9279221

Is this a joke?? Nobody HAS to live in McLean. Nobody feels sorry for anyone house poor living in McLean either

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know plenty of 300-400 HHI getting 1.5mn mortgage. This is the price to pay for a livable house in this area in today’s market. Stop shaming people for prioritizing good public schools and a house suitable for two working from home parents and often virtual learning kids

Oh, come on. Are you seriously contending that is is necessary to spend $1.5m to get a *liveable* house?

Look at this barely livable house in the suburb, with everything needing upgrades: floors, kitchen, bathrooms, windows, doors etc. listed for 1.5 and sold for 1.7. Just an example of the crazy price for a livable house in good school area in today’s market. People just HAVE TO take on a big mortgage to survive.

https://www.redfin.com/VA/McLean/926-Ridge-Dr-22101/home/9279221

Is this a joke?? Nobody HAS to live in McLean. Nobody feels sorry for anyone house poor living in McLean either

It is not a joke if such a house is selling for 1.7 in the suburb. A tragedy indeed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:New to the thread, OP can 100% comfortably afford this amount and still save plenty, even with kids.

I am shocked at how many people are saying stuff like "I make $500k and only buy 600k houses" etc. Sure, if you live in a super low COL place and 600k can get you a nice house, then why not. But in the DMV, 1.5m house is almost near tear down condition. You have to pay if you want a decent house to live in.

OP, you can easily afford it, this is not a stretch by any means. Sure, you won't be dining at Michelin restaurants very often, or have fancy overseas trips that much, or buy designer items at Tysons Galleria, but you can afford a comfortable life with a 900k mortgage and that HHI.

This is false, no matter how much work "almost" and "near" are doing.

LOL. Near tear down condition. Delusional. Only in Mclean/Vienna. What exactly is the definition of a "nice" house? Not saying go out to Haymarket but geez, you can get a nice place for less than that in this area. But ok, keep up with the Joneses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have a $1.2M mortgage and around $250k HHI (2 kids no private)

Are you maxing out your kids’ 529s and your 401ks each month?

401(k)a, no - we both put 10% in and fine with that. We are feds and expect to get the FERS retirement. Plus I will have a military reserve pension worth around $2.5k/mo in retirement

As for 529s, we are putting enough away that we can pay for VA public school tuition and room and board for each kid.

We save money and prioritize elsewhere - paid off cars that we won't replace for a few more years, inexpensive and local vacations, public school, etc

[Anonymous]

Anonymous wrote:Shocked by how many people think this is ok. We make $380k and our mortgage is $3,900/month and I def would not be comfortable with it being any higher than that.

Wow, I think we spend so much less than most people.

When we moved to DC in 2009, our mortgage was $770k on a $240k HHI. We were fine.

Now with $400k HHI we’ve paid mortgage down to $220k and are paying full-pay DC college out mostly out of pocket (not dipping into $320k we’d saved) and we do about $100k/year of retirement savings including employer match.

Do most people responding have multiple kids in private school?

[Anonymous]

As double feds you can take more risks than a lot of other people because your jobs are so secure. If you have an emergency fund and can manage the monthly costs, I think you are fine. Others want more flexibility to spend on other things, and that is fine too.