Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would say $650K ($500K mortgage and $150K down). If you are generally frugal, $700K.

this is WAY too much. A $600K mortgage on a $165K income would be PAINFUL. Especially if any childcare costs are involved. If the OP had young kids and needs any sort of nanny/full time care, they'll be pinching pennies.

A 500K mortgage you mean?

That's a $3,000 mortgage check monthly, including the taxes and insurance. Give or take.

Totally doable on income of $165k.

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.

yes, I wouldn't go above a $500K mortgage on a $165K income in the DC area. The rest of life here it too expensive.

We make $225K and have a monthly payment of $3400 (not sure of size of loan) and it's just about right--allows to save for retirement (although not that aggressively), college (although not fully--we have 3 kids), eat reasonably well, give to charity, take 1 nice vacation per year plus multiple (driving) weekends away, pay DC area rates for summer camp/extracurriculars/lessons, have a bi weekly housekeeper, etc. We use public school and don't have expensive hobbies, etc.

Anonymous wrote:

Anonymous wrote:I would say $650K ($500K mortgage and $150K down). If you are generally frugal, $700K.

this is WAY too much. A $600K mortgage on a $165K income would be PAINFUL. Especially if any childcare costs are involved. If the OP had young kids and needs any sort of nanny/full time care, they'll be pinching pennies.

A 500K mortgage you mean?

That's a $3,000 mortgage check monthly, including the taxes and insurance. Give or take.

Totally doable on income of $165k.

Anonymous wrote:We're a family of four who just moved to area 6 mo ago, so still adjusting to finances in DC area. I'm trying to figure out how much house we can afford. We'll have downpayment of about $200k, HHI of $165k, two kids, no debt. One website tells me we can afford more than $900k, which seems way high. We don't want to be house poor--want to save for college, retirement (though I'll qualify for a reasonable pension so that helps, no pension for hubby), have some money for fun/travel/emergency savings too. On the other hand, seems like you pay a lot to get a not spectacular house in a good, close-in school district here.

More experienced DC-area families--have any ideas what a reasonable budget is, either for monthly mortgage or overall purchase price? Thanks for any ideas!

$600k house. Maybe $700k if you're confident in income growth in coming years.

Wierd--kids ages were supposed to be seven and eight, not seven and smiley. Anyway...

OP here. Awesome responses--thanks. Here's more info: both kids are now school age (7 and 8), so we have after school care expenses. Two commutes--one to DC, one to Arlington. Hoping to move to Arlington.

We have similar income to you, but we put down 400k and have a 400k mortgage 30 year at 3.875 rate. I'm comfortable with that, but I must say kids activities are a lot more expensive here than I budgeted for. So given that you only have 2 kids, but you make a tad more I would not go above 500K mortgage. The money goes quickly even if you're frugal

Anonymous wrote:I would say $650K ($500K mortgage and $150K down). If you are generally frugal, $700K.

this is WAY too much. A $600K mortgage on a $165K income would be PAINFUL. Especially if any childcare costs are involved. If the OP had young kids and needs any sort of nanny/full time care, they'll be pinching pennies.

Look in the Woodson high school pyramid. Good schools, houses you could afford.

I would say $650K ($500K mortgage and $150K down). If you are generally frugal, $700K.

Where have you moved from? If you are used to new, or completely renovated homes, even with a sizable down payment, you will not get that here.

With your HHI, I would not want to have a mortgage of over $500k, especially if you want to enjoy life and still save. Are you wedded to living in Virginia? How close in are you hoping to be? Do you have 2 commutes into the District, or one? There are so many factors here.

If you are willing to consider Maryland, I think many people in your situation (out of towners, used to a bigger, nicer house) like living in Olney.

If you want to be in close in VA, with good schools (Arlington, McLean or Falls Church) and want a renovated house, you will spend $900k.

You would also spend close to $900K for what it sounds like you want in Bethesda or Chevy Chase.

What is more important to your family: a shorter commute or a bigger house?

A general rule of thumb is
HHI * 3 = mortgage value
so, your max would be $495k for the mortgage, house price of $695k.

I don't know I'd be comfortable with that high of a mortgage with two kids though.

And your retirement savings should be 20 * current earnings when you retire (in order to live on dividends, not eat into principal). So you'll want $3.3m in savings to retire.

Daunting, isn't it? But that's one reason why you don't want to get suckered into the $900k house and a mortgage of $700k.

600K house?
With a $165K income I wouldn't want to go above about a $450K (max $500K) mortgage (so $150K down, $50K for closing). It really depends on how old your children are and what childcare costs you have.

Most of these families are neck deep in debt save for the trust fund babies in Kent. Be more conservative than these yentas.

We're a family of four who just moved to area 6 mo ago, so still adjusting to finances in DC area. I'm trying to figure out how much house we can afford. We'll have downpayment of about $200k, HHI of $165k, two kids, no debt. One website tells me we can afford more than $900k, which seems way high. We don't want to be house poor--want to save for college, retirement (though I'll qualify for a reasonable pension so that helps, no pension for hubby), have some money for fun/travel/emergency savings too. On the other hand, seems like you pay a lot to get a not spectacular house in a good, close-in school district here.

More experienced DC-area families--have any ideas what a reasonable budget is, either for monthly mortgage or overall purchase price? Thanks for any ideas!