Reply to If you bought a house over $1.5 were you able to afford to do so on your salaries or equity?

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Reply to "If you bought a house over $1.5 were you able to afford to do so on your salaries or equity?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]$1.5m with 20% down at 3.5% interest should be under $7k/month, or $84k/year.  Even at $300k HHI that's still less than 1/3 of your gross income.  Understandable if that still makes you uncomfortable but you're competing against a lot of buyers who will stretch themselves much further to make things work.[/quote]

That mortgage is an insane amount. We make around 500K, I'm a fed, and we couldn't pull 7K/month without huge sacrifices. We wouldn't be able to save a lot, travel, afford cleaning services and quality food, pay for the kids' tuition etc. [/quote]

We're at $400K (salaries + bonus) and NO WAY in hell would we ever feel comfortable buying at $1.5M house.  We purchased in 2020, house was $1.21M, mortgage + taxes and insurance = $5100 a month. We max out our 401K, we barely travel - vacation every 2 years, kids are in public.

$1.5M at $300K is insanity. You would be eating PBJ for the rest of your life.[/quote]
I'm not trying to be snarky, I'm genuinely interested in your expenses. 
$400K gross
- $20K 401k contribution (savings)
- $80K taxes
- $61K housing
= $239K take home pay

What do you spend that on? Also, the difference of $1.2M vs $1.5M house is $20K/year more.
If $20K is stretching your budget and what causes you to go on a PBJ diet, than you really should look somewhere else as the source of expenses. 
[/quote]

Why is only one person contributing to the 401k? They also have to pay for health care and all the random life crap that comes up and probably like to save every month. Kids go to college eventually. Seems reasonable to me.[/quote]

First PP here- that is correct, thank you for pointing that out. I should have added that we're both contributing. One is catch up, one is not.  I don't like to live on a shoestring budget how people don't get this is beyond me.  [/quote]

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