What about your monthly credit card bill? Was that included?

Anonymous wrote:Well if the crystal ball suggests your steady and increasing income then you're probably fine. Otherwise, you'll be like the gazillion others who are house poor and underwater on mortgages.

OP, is your income secure and likely to increase?

Anonymous wrote:How are you going to heat it? Have you checked out the monthly utility bills? Odds are that you'll pay hundreds in winter for heating. Factor in all the utilities,phone, cable, internet, taxes for everything before even considering an offer based upon a reasonable fixed interest rate. Take a good look at it. Are you going to add $100K for a renovation to your liking? Don't join the "land poor."

Our current utilities, car, insurance etc is 3000. I added in an extra 1000+ for extra expenses such as utilities for a bigger home, that's why I multiplied it by 1.5 . Am I not being conservative enough? I'm not tyring to be smart, this is a real concern I have.

I wouldn't.

Our HHI is $250K and no debt, so to compare, I would not be comfortable spending $900K on a house.

Also don't like the idea of taking money out of retirement.

The idea that incomes always rise is not true anymore.

[quote=Anonymous]OP here, this is the game plan

Borrowing 50K out of each of our TSP = 100K + 100K in savings for a 20% down payment. Repay back our TSP once our current home is sold, we're pretty certain we can get 100K-150K out of our house.

NOthing needs to be fixed bc everything appears to be replaced already in teh new home.

Mortgage= 4600/month (includes property tax) which doubles our current mortgage
Forecast bills will be =4350 (includes car payment, insurance, utilities child care etc.; calculated roughly by our current bills*1.5) with no savings and I didn't caculate child care yet for another child but no more than another 1000.

However, I didn't calculate our fun money which we keep in separate accounts, which would be another 2000, instead of spending that, we can probably save that.

If this is an awesome plane, we are putting a bid, so please talk me out of it if this is flawed[/quote]

Whoa! Do you have a cushion for a job loss or economic downturn? If you're not careful, I forecast a foreclosure and/or short sale in your future. Caveat emptor.

Most people on these threads are uber-conservative because they bought their houses pre-2002 and can't relate. So take what people advise on here with that understanding.

How are you going to heat it? Have you checked out the monthly utility bills? Odds are that you'll pay hundreds in winter for heating. Factor in all the utilities,phone, cable, internet, taxes for everything before even considering an offer based upon a reasonable fixed interest rate. Take a good look at it. Are you going to add $100K for a renovation to your liking? Don't join the "land poor."

Be sure to include the tax effect of your higher interest payments when calculating your take-home pay and net income each month.

Anonymous wrote:OP here, this is the game plan

Borrowing 50K out of each of our TSP = 100K + 100K in savings for a 20% down payment. Repay back our TSP once our current home is sold, we're pretty certain we can get 100K-150K out of our house.

NOthing needs to be fixed bc everything appears to be replaced already in teh new home.

Mortgage= 4600/month (includes property tax) which doubles our current mortgage
Forecast bills will be =4350 (includes car payment, insurance, utilities child care etc.; calculated roughly by our current bills*1.5) with no savings and I didn't caculate child care yet for another child but no more than another 1000.

However, I didn't calculate our fun money which we keep in separate accounts, which would be another 2000, instead of spending that, we can probably save that.

If this is an awesome plane, we are putting a bid, so please talk me out of it if this is flawed

I would not be comfortable with this budget. Houses can quickly become money pits. You need a big reserve.

OP here, this is the game plan

Borrowing 50K out of each of our TSP = 100K + 100K in savings for a 20% down payment. Repay back our TSP once our current home is sold, we're pretty certain we can get 100K-150K out of our house.

NOthing needs to be fixed bc everything appears to be replaced already in teh new home.

Mortgage= 4600/month (includes property tax) which doubles our current mortgage
Forecast bills will be =4350 (includes car payment, insurance, utilities child care etc.; calculated roughly by our current bills*1.5) with no savings and I didn't caculate child care yet for another child but no more than another 1000.

However, I didn't calculate our fun money which we keep in separate accounts, which would be another 2000, instead of spending that, we can probably save that.

If this is an awesome plane, we are putting a bid, so please talk me out of it if this is flawed

Well if the crystal ball suggests your steady and increasing income then you're probably fine. Otherwise, you'll be like the gazillion others who are house poor and underwater on mortgages.

I love my million dollar house and the school that goes with it. But repairs the first year were well over five grand. And they probably will be again the second year. And nothing was major such ad roof/ heating etc.

Anonymous wrote:Don't do it. Being house poor would not be fun. You will end up hating the house.

I disagree. Depends on the size of the mortgage.

Also, incomes rise. When you buy a house, in 10 years your income will be higher but your house payment will be basically the same (property tax increases will affect it slightly)

Don't do it. Being house poor would not be fun. You will end up hating the house.

My husband and I are falling in love with a home in a very nice neighborhood and a better school district for my sons (1 month and 2 years). While our HHI is 300K, I did the math and it appears that we will still be ok but it'll wipe out our savings and what we normally put into savings every month. Not living paycheck to paycheck but very close. I guess I am trying to convince myself out of love with it so that I can just move on and accept what we have.