Reply to HHI for $700K house?

Forum Index » Real Estate

Reply to "HHI for $700K house?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]We are in a extremely similar situation and approached home affordability by working backwards.  Figure out your net take-home pay, after taxes, and after maxing your 401(k).  Subtract daycare, monthly living expenses, other debts, college saving goals, vacation/home improvement/any other goals you have.  Make sure you feel comfortable with your emergency fund, and if not, also account for how much you need to put into that to make you comfortable.  Whatever is left is available for your mortgage payment.

From that mortgage payment, figure out how much home you can afford based off that payment and how much you have available for a down-payment.   If you want to sacrifice vacations/tighten your monthly budget for a few years while the kids are still in daycare, recognizing that your household income will increase and daycare costs go away (but to be replaced by other kid expenses), then go for it.

Bottom-line, everybody has different goals in terms of how they live their live and how they spend their money.  It's best to consider your current financial situation, your short, medium and long-term goals and then work backwards to determine how much home you feel comfortable with while accomplishing those goals, recognizing every extra dollar you spend on your mortgage means one less dollar for other spending or saving goals.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics