That’s absolutely crazy. What is your monthly take home?

Is your income after a 401k contribution, and if so how much?

And how much emergency fund do you have?

And are any of your kids in paid child care or private school?

Your payment seems low. We just refied at 2.625% for $750k, and our PITI is right around $4000. You presumably are paying PMI - is that factored in?

I think you'll do okay as long as your jobs are secure and might increase. The scary thing is that you didn't put down 20%. We had similar stats but put down 30%. Our salaries have increased since and it hasn't been hard making payments.

I'd suggest some good life and disability insurance that would cover your expenses if you don't already have it.

Since you don't have daycare I think you'll be fine. We have a similar household income and our mortgage is 2700 but we have one daycare plus another on the way and we do just fine (and I do not feel constantly restricted on a budget).

With no daycare I think you can make it work.

Anonymous wrote:Only thing you will ever do is work to pay for this house.

And when they retire, they'll have a home that's probably worth well north of $1million, and they can sell and pay cash for a nice place next to the midwestern lady up there with her $200k house on her $100k income.

Anonymous wrote:OP here...

Our net income - after taxes and after saving for retirement - is about $11,000. So our total PITI payment will be 34% of our net income.

The good news is that we don't have any other debt (no credit cards, student loan, or car payments).

What are you saving for retirement? Kids' college?

Yes, you bought too much house. Yes, you'll be living on a budget. But you decided that it would be worth it, so...

You'll be fine, op. No European vacations anytime soon, but you'll be fine. We bought a $750k house on a similar income and it's fine. We even pay for catholic school on top of that. We're not rolling in the dough, but we make it work. I assume you both work? Odds are one or both of you will be getting a raise in the future, that will help ease things up. It's okay.

If you are reasonable secure and content in your current jobs I see nothing wrong with this decision. You need a place to live, and you should be happy in your house. Interest rates are low, and you're locked into a good rate, and under those circumstances a 710k mortgage on 186k a year is not over the top.


Pay no attention to the posters who say you should have put down 20 percent. Why on earth would you do that when you can get a good loan while putting down less? I've bought 7 houses over the years and never once put down more than ten percent. Mortgage interest is tax deductible and your money with interest rates so low your money is best invested elsewhere rather than paying down your mortgage.

And the bottom line is this: if you discover that you've over-extended, sell. It's not like you have to go to prison.

Anonymous wrote:OP here...

Our net income - after taxes and after saving for retirement - is about $11,000. So our total PITI payment will be 34% of our net income.

The good news is that we don't have any other debt (no credit cards, student loan, or car payments).

So you are concerned you can't live on 7k a month?

OP here...

Our net income - after taxes and after saving for retirement - is about $11,000. So our total PITI payment will be 34% of our net income.

The good news is that we don't have any other debt (no credit cards, student loan, or car payments).

Anonymous wrote:We weren’t comfortable with more than a $200k house on a HHI of $100,000/yr so that would be a big no from us. But we are resisting the two income trap and live in the Midwest.

Seems pretty irrelevant on the DC Urban Moms and Dads forum.

Anonymous wrote:Only thing you will ever do is work to pay for this house.

+1 you will spend your life on a budget. I bought a house for $287k making $115k. My pre-approval went up to $800k and my agent was the one who stopped me from buying a house that would have seriously cramped my lifestyle. I pay $1400/mo and never have to stress about the mortgage or turn down luxuries.