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[quote=Anonymous][quote]I think a 500 K mortgage on $165 K income would be hard with 2 kids, once you account for retirement savings, college savings, before/after care for kids and summer camps. We have that same income and while we do have one child still in full time daycare, our mortgage payment is $2200 and we couldn't pay more than that without reducing retirement and college savings.[/quote]

I agree with this.  A 500,000 mortgage at 4% (Wells Fargo's advertised rates today) is a monthly payment of $2387.08, before taxes and insurance.  Call it $3000/month, all in.  $165,000 HHI gives you a monthly gross of $13,750.  Assume 30% fed/state/FICA withholding; that leaves $9625.  After mortgage, it's $6625.  Assume you max out retirement in husband's 401k, that's $1416/month, leaving $5209.  If you want to save $6000 per kid per year for college, that's an extra $1000/month, leaving $4209.  So, out of $4200, you have to pay for everything else - food, utilities, travel, health insurance and other medical expenses (eyeglasses, copays, OTC medicine, etc.) non-retirement savings, home repairs, gym, cell phones car payment/savings for a new car, summer camp, kids' activities, holiday presents . . . I'm sure there are others that I'm forgetting.  I know that I'm more fiscally conservative than most people, but that seems a little squeezed to me.  [/quote]

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