Reply to What is it like to be “house poor”?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Simple answer
NO EXTRAS. ZERO. HARD BUDGET.

Figure in higher home insurance, property tax, utilities, those sneak in quick with no notice.
Would I do it ? No. [/quote]

This thread all seems very subjective.  Interesting topic we've been thinking about...  Wouldn't it be more helpful to consider it in terms of percentage of after-tax income, or something like that, for some perspective?

We currently live in a house that's worth about $1.1M and do private for two kids...  The place is perfectly fine, but for our forever home we have a number of "wants" (one is good public schools) and it would be about $2.3-$2.5.  Our current mortgage is about 20% of monthly net income of $21k; the more expensive place would be ~40% (w/current interest rates)...  only other monthly expenses are 529s.  We have a sizable TSP and IRA but otherwise stopped saving for retirement due to a generous defined benefit retirement plan.  Risky?  Thoughts?  We are very  thankful for this first world problem FWIW.

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Likelihood of $380 HHI getting a 75% LTV jumbo mortgage on a $2.5MM house without very substantial cash reserve is very, very low. [/quote]

What about 80% on a 2.0M? Same HHI. I was told cash reserves need to be 12 months of mortgage payments (1/2 in cash or stock, other 1/2 can be retirement, but only at 70% value). [/quote]

I was approved for a Jumbo at 20% down, for a mortgage payment of up to $9.5k a month--this was based on my single salary of $310. That being said, we have a HHI higher than yours right now (two kids, public school) and set $1.2M as the top of our budget. I frankly have no idea how you would swing the monthly payments on an 80% $2M loan.
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What kind of rate did you get? We were quoted under $8k P+I on a $2.05 with 20% down (so total loan around $1.6).[/quote]

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