Anonymous
03/07/2013 12:55
Subject: Re:How much can we afford?
People on here seem to be extremely conservative, but it sounds like childcare is a huge variable for people. The numbers people are posting ($2K) is like having an extra mortgage (at today's rates, that would be like paying a mortgage on $450K!). For families with a stay-at-home parent (i.e. minimal child-care expenses), it seems like the equation would be vastly different.
Anonymous
03/06/2013 16:19
Subject: Re:How much can we afford?
Anonymous wrote:New poster here...Reading these types of threads on DCUM has made me a bit nervous lately. Our HHI is just upwards of $145k and we have around $130k as a downpayment. We have child care which is our major monthly expense (about $2100), more than our current mortgage and condo fees which all told equal around $1800 a month. But I expect that the child care expenses will decrease in a couple years (oldest is about to start kindergarten, youngest is 2) and our income will also go up (right now I work PT). We have minimal debt in the form of student loans--no car payment, no credit card bills. We have been looking at up to $650k as a purchase price. Are others out there just very conservative? I sure thought we were...we live pretty modestly (by local standards that is) and have been able to save up quite a bit of money over the past few years.
People on DCUM are extremely conservative. If the dc market was like what folks on here claim is a "maximum amount" to spend then very few people would be living in the $750k-$850k houses. And that's the low-mid end of housing in and around the beltway.
I do agree with the poster who said it depends on your lifestyle and it is really hard to generalize.
Anonymous
03/06/2013 16:10
Subject: How much can we afford?
NP here. How about 180k hhi, 350k cash after sale of current home? No debt. Maxed retirement.
Anonymous
03/06/2013 16:04
Subject: How much can we afford?
Why do you want to buy? Ask yourself that. You MUST budet repairs and maintenance given you will not get a brand new, hassle free house at even $500k.
$2300/month rental is good, and there is a real estate craziness/bubble right now. Why rush? Nobody is selling.
$2300/month rental is good, and there is a real estate craziness/bubble right now. Why rush? Nobody is selling.
Anonymous
03/06/2013 16:02
Subject: How much can we afford?
I think everyone's situation and risk tolerance is different, so it's really hard to say what's "right." We have a HHI of $210k, no debt, and a mortgage of $330k (small townhouse), with one kid in daycare.
We max out our retirement, go out to eat quite a bit, make a lot of home improvements, and generally don't stress about money. We also don't have to worry that much about job loss.
If you're a homebody who cooks at home and spends less than us, you'll feel more comfortable with a higher payment. You just have to make a budget that works for you and go from there.
We max out our retirement, go out to eat quite a bit, make a lot of home improvements, and generally don't stress about money. We also don't have to worry that much about job loss.
If you're a homebody who cooks at home and spends less than us, you'll feel more comfortable with a higher payment. You just have to make a budget that works for you and go from there.
Anonymous
03/06/2013 15:54
Subject: How much can we afford?
PP - $650K on an HHI of $145 is not wise. First you are using your whole dowpayment. that is nuts. and dont forget about moving costs, paint, carpet etc.
You also assume that your income will go up, and that you will be working FT. Take it from me, you have NO IDEA what the future holds. Be more conservative with your purchase price.
You also assume that your income will go up, and that you will be working FT. Take it from me, you have NO IDEA what the future holds. Be more conservative with your purchase price.
Anonymous
03/06/2013 15:29
Subject: Re:How much can we afford?
New poster here...Reading these types of threads on DCUM has made me a bit nervous lately. Our HHI is just upwards of $145k and we have around $130k as a downpayment. We have child care which is our major monthly expense (about $2100), more than our current mortgage and condo fees which all told equal around $1800 a month. But I expect that the child care expenses will decrease in a couple years (oldest is about to start kindergarten, youngest is 2) and our income will also go up (right now I work PT). We have minimal debt in the form of student loans--no car payment, no credit card bills. We have been looking at up to $650k as a purchase price. Are others out there just very conservative? I sure thought we were...we live pretty modestly (by local standards that is) and have been able to save up quite a bit of money over the past few years.
Anonymous
03/06/2013 14:50
Subject: How much can we afford?
Anonymous wrote:What does Hhi mean?
Household Income.
Anonymous
03/06/2013 14:24
Subject: How much can we afford?
What does Hhi mean?
Anonymous
03/06/2013 14:16
Subject: How much can we afford?
Anonymous wrote:Take $50k of that $150k and apply it to zeroing out your debts.
You now have $100k for downpayment, closing, fixing up costs, etc.
I'd be looking at 400-450k in that case.
I guess I'm confused about OP's expenses. Does she have credit card debt, or was she just listing monthly expenses? I was thinking she meant the latter based on how she worded things.
Anonymous
03/06/2013 14:12
Subject: How much can we afford?
Are you planning to have more kids? That's another $1,300 to $1,600 in child care right there for awhile, which could make it harder to afford monthly bills unless you set aside some of that savings to cover the time you have two kids in daycare.
We have similar HHI, rent, and bills, and we're looking to finance around $400-$425 when we buy a home.
Our goal is to have mortgage, taxes, and homeowner's insurance within the current cost of our rent.
We have similar HHI, rent, and bills, and we're looking to finance around $400-$425 when we buy a home.
Our goal is to have mortgage, taxes, and homeowner's insurance within the current cost of our rent.
Anonymous
03/06/2013 14:04
Subject: How much can we afford?
I agree with the others, about $400k for the mortgage, so look at houses in the $500k range.
Anonymous
03/06/2013 11:04
Subject: How much can we afford?
Take $50k of that $150k and apply it to zeroing out your debts.
You now have $100k for downpayment, closing, fixing up costs, etc.
I'd be looking at 400-450k in that case.
You now have $100k for downpayment, closing, fixing up costs, etc.
I'd be looking at 400-450k in that case.
Anonymous
03/06/2013 10:00
Subject: How much can we afford?
Anonymous wrote:We have the same HHI but lower monthly expenses and are looking at 500k houses with a 100k downpayment and 400k loan.
This. I think you could spend up to 500 if you put down 20%. Rates are great now.
Anonymous
03/06/2013 09:17
Subject: How much can we afford?
Anonymous wrote:Anonymous wrote:DO NOT DO $525K!!!
I agree 100%. OP will regret it mightily if they finance more than 400K, mark my words.
Why? With rates this low I would finance as much as possible. This is a once in a lifetime opportunity