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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]HHI - $300k
Student debt - $250k
Car debt and other debt -$50k
Retirement fund, IRAs and 401k balance- $170k
Monthly fixed expenses: $4k

[/quote]

Why does everyone complicate this so much? There is a tried and tested 28/36 guideline on home affordability. Let’s just apply that….

Baseline PITI = 28% x (HHI/12) = $7K

With a 30 year mortgage at 7.25%, this works out to be a roughly $870K maximum mortgage, assuming $1000 per month for HOA, insurance, and property taxes.

Unfortunately, you have student loan debt and this must be subtracted from your mortgage allocation: $870K - $250K = $620K

Therefore, the largest mortgage you can afford to take is 30 year $620K @ 7.25%. Assuming you put 20% down, the maximum house you can afford is $620K / 80% = [b]$775K with a $155K down payment[/b].

This will stick you with a monthly PITI of just over $5K, leaving you with maybe $10K net per month to cover your car, student loans, and other expenses. [/quote]

I think this is probably a decent estimate. Once OP and her husband make more money in a few years and the baby goes to kinder, they can buy a nicer house. [/quote]

No, once that happens they start saving for retirement, funding 529s, put $ into savings, and finance a few kids activities like swim lessons. And they can put more money towards loans. And they will need to finance home repairs, buy furniture for their house, etc. Live within your means, save, wait 15 years and then figure out what you want. [/quote]

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