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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think 1.7m is too much to spend in your situation, OP.  Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer.  You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k).  We're in a comparable situation to you, and that's our target.[/quote]

I agree.  They would be able to afford $1.7 million on that HHI easily, IF they were socking away significant amounts of money now, which they aren't.  If it took them 5 years to save $750,000 with a million HHI, they are spending a LOT of money even before they buy the house.  Makes me wonder if the husband is looking at their current spending rate and realizes that they would be saving nothing if they buy the more expensive house.

On the other hand, some people just have a mental block against buying a house that costs more than a million dollars, no matter how much money they make.  Having a mortgage of over a million dollars can be scary.  [/quote]

If you consider net income is about $650k, college tuitions are paid off and we have another $500k in non-liquid assets (retirement accounts etc.) what do you consider would be a more reasonable savings rate?  If you add it all up, we have over $1.3M in savings, a little over half "get-at-able".  Heretofore, I thought our savings rate was pretty good.  I guess I will have to read Millionare Next Door.[/quote]

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