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[quote=Anonymous]Home purchase planning for a married couple and parents of two young kids. What PITI if we might have to stretch? Is $4k too far?

-Age: early 40s
-Two kids, kindergarten and 3rd grade. 
-Gross income $250k (may go to $270k pending a possible promotion within two years, then don't expect more than routine annual increases).
-Assets: $400k equity in our home (but really that goes down to $350kish for a down payment after all the selling fees and such)
-Savings: $65k anticipated by the time we are ready to purchase.
-No student loans or current car debt (but anticipate new car needed in a couple years and will most likely need to finance)
-$20k and $10k in 529s for each kid, respectively (aiming to pay for at least 2 years of state school)
-$350k in 401ks. Yes, behind in our early 40s; anticipate continuing to max this for the next 23 years. DH isn't sure he wants to retire though, he hates sitting around.

DC area and it seems that still puts us at $800k-$900k for an hour commute and with mortgage rates, and restricted inventory, seems where we're looking, the $800k listings are going into bidding wars and selling for $900k+. Unwilling to look at rowhouses after dealing with every problem in the book living in one. Single family homes only (can be small), just don't want to be attached to neighbors anymore and want a small yard.

This potentially means PITI around $4k unless mortgage rates drop substantially. We could buy a cheaper house and don't mind things being a bit of date or just need to replace some carpet and repaint. However, generally the cheaper houses do need some work, so then if we have to drop our down payment to afford the home updates, the PITI is the same in the end.

So, $4K PITI. Can we? Should we? [/quote]

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