How much should I be making for 800k house mortgage?

[Anonymous]

Seems like all the nice places are about 800k. What kind of salaries do people have to afford such a home?

[Anonymous]

250k

[Anonymous]

mortgage?
or total house?

[Anonymous]

Anonymous wrote: mortgage?
or total house?

total house, 20% down

[Anonymous]

We are looking between 700-800 for the house purchase (the mortgage will be less bc we are putting 20% down) and we make 310k base salary and about 60k in additional comp. This is outside of dmv in another high cost of living area but not as high.

[Anonymous]

The answer will depend a lot on the other details of your financial situation (kids, student loan debt, other expenses). DCUM has a reputation for giving extremely conservative advice, so it's always a good idea to run your own budget.

We took out an 800k mortgage back when interest rates were 5% in late 2018 with about 210k in income. We weren't swimming in extra free cash at first, but refinancing has saved us quite a lot on our mortgage payments (our incomes have also increased). So, it's very doable on that income or even less if your other expenses aren't that high. Low interest rates really do make quite a difference.

[Anonymous]

Our mortgage will be in the mid-700s and we make 295k base with 100k in bonus compensation, with that number being the average over three years. We are putting 15% down.

Only other debt are some grad school loans.

[Anonymous]

A wealthy relative who works in real estate once said at a family party that people should buy houses that cost no more than they earn in one year.

So if you find a home worth $85k, please let me know!

[Anonymous]

Anonymous wrote:A wealthy relative who works in real estate once said at a family party that people should buy houses that cost no more than they earn in one year.

So if you find a home worth $85k, please let me know!

LOL

[Anonymous]

Anonymous wrote:250k

This is my HHI and our mortgage is 400k. An 800k mortgage would leave us with minimal savings, much less discretionary income, fewer trips, etc. Yes, it would be doable, but it is not smart and it wouldn't be pleasant. That said, many people are overextended and an 800k mortgage with a 250k probably isn't the norm but not an outlier either.

[Anonymous]

Anonymous wrote:The answer will depend a lot on the other details of your financial situation (kids, student loan debt, other expenses). DCUM has a reputation for giving extremely conservative advice, so it's always a good idea to run your own budget.

We took out an 800k mortgage back when interest rates were 5% in late 2018 with about 210k in income. We weren't swimming in extra free cash at first, but refinancing has saved us quite a lot on our mortgage payments (our incomes have also increased). So, it's very doable on that income or even less if your other expenses aren't that high. Low interest rates really do make quite a difference.

Yeah, your other debt will be a big factor as well as whether or not you expect your salary to increase.

You will get a lot of conservative advice. (I'll the PP with the mortgage in the mid-700s, which is relatively conservative for this area based on our income, but we made that decision because of some complex factors.) Keep in mind that many of the posters here are older and their advice comes from that perspective.

[Anonymous]

Anonymous wrote:

Anonymous wrote:250k

This is my HHI and our mortgage is 400k. An 800k mortgage would leave us with minimal savings, much less discretionary income, fewer trips, etc. Yes, it would be doable, but it is not smart and it wouldn't be pleasant. That said, many people are overextended and an 800k mortgage with a 250k probably isn't the norm but not an outlier either.

Oh come on. We have 360k income and a 800-ish mortgage and we are extremely comfortable. Sure, thats a fair amount more money than you, but hardly double.

Maxing out retirement, have well over 6 months of living expenses in our standard savings, and also have other savings and investment accounts. A few smaller vacations a year, one or two bigger. What do you spend your money on??

[Anonymous]

I’m reading this as mortgaging only $640k. It’s an 800k house and they are putting down 20 percent. That’s doable totally on 250k

[Anonymous]

$266K after taxes.

[Anonymous]

We earn $270K and have a $700K mortgage, payment under $4K with taxes. We have one child in daycare. No student loans or other debt. It is totally comfortable and we are able to max retirement and save for 529s and other investments as well. We do not live extravagantly or take expensive international trips.

Taxes or HOA fees can dramatically change the equation. You have to look at your whole financial picture and find a mortgage payment that works with your goals.