Reply to How much to expect to spend on a new house?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We are looking to have a max mortgage (not total sales price) of 540K. Technically this means we could afford the house on one salary (although we could not afford daycare and house on one salary). This puts our PITI at $2800 or so. 
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I don't think that the math is quite right- our $500K mortgage at 3.65% (30yf) with PITI is about $3150, Arlington taxes, no PMI.

Most financial advisers will tell you not to spend more than 30% of your income (I'd use net) on housing.  Assuming that your salaries are roughly $150/$150 (for your $300 HHI) and you want to be conservative just use ~30% of a single income (my $150K nets $8200/month before retirement contributions so our $3150 PITI is about 38% of that single income).  Adding all mandatory expenses, including retirement and our life exceeds the single earner income by about $750.  Our reserves are 12 months of double that deficit.   [/quote]

Whoops! You are right. Sorry I have a billion different numbers running through my head lately. Thank you for correcting me. [/quote]

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