Anonymous
04/07/2017 20:44
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
We had AGI of $183k last year (after 18k for 401k and some other pretax flex accounts) and it's surprisingly tight with two kids and $2600 piti. We also funded two Roth IRAs at $920 a month though.
Anonymous
04/07/2017 20:21
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
OP has free childcare right now. What if the grandparent had a stroke this weekend? Now OP has a $2500/month (plus aftercare for the preschooler?) childcare bill.
That said, $4000 PITI on $10,500 net isn't that bad, assuming OP has no other debt and healthy savings. The remaining $6500 should cover reasonable living expenses plus the daycare bill.
That said, $4000 PITI on $10,500 net isn't that bad, assuming OP has no other debt and healthy savings. The remaining $6500 should cover reasonable living expenses plus the daycare bill.
Anonymous
04/07/2017 20:10
Subject: Re:found a perfect house but PITI would be 25 percent of our monthly gross income.
I wouldn't do it but we weren't open to a mortgage we couldn't pay using one salary. Spending almost half of my take home pay on a mortgage would stress me out.
Anonymous
04/07/2017 20:01
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
6.5k left after mortgage sounds fine! What's your burn rate now?
Anonymous
04/07/2017 18:16
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Have you considered the tax impact of the mortgage interest deduction?
Anonymous
04/07/2017 18:15
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Have 2 kids, 3 year old and 3 month old. grandparents watch the 3 month old and 3 year old goes to preschool. not planning on any more kids
too much? or do you think its reasonable for the right house?
Will your income increase in coming years?
Anonymous
04/07/2017 18:03
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:OP here:
for those asking about net income: i could probably make my exemptions more accurate, but currently it is about
10.5 k net a month
PP: So your PITI would be about 40% of that. For me, that's too tight.
$6.5K per month for everything else sounds tight to you?
It really depends. OP didn't say if they have decent savings, what their retirement looks like, if they're on track for college. All we know is they have free childcare (great!) and are looking at a PITI OP is not entirely comfortable with (not so great). $6.5k could be plenty leftover, if retirement/college/savings are on track, or it could be not enough money, if retirement is not taken out before the $10.5k gets to them, if for some reason (health, etc.) grandparents can't watch the kids, if one of them loses a job and they don't have a sufficient emergency fund. We really don't have enough information.
+1
Anonymous
04/07/2017 16:48
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Anonymous wrote:Anonymous wrote:OP here:
for those asking about net income: i could probably make my exemptions more accurate, but currently it is about
10.5 k net a month
PP: So your PITI would be about 40% of that. For me, that's too tight.
$6.5K per month for everything else sounds tight to you?
It really depends. OP didn't say if they have decent savings, what their retirement looks like, if they're on track for college. All we know is they have free childcare (great!) and are looking at a PITI OP is not entirely comfortable with (not so great). $6.5k could be plenty leftover, if retirement/college/savings are on track, or it could be not enough money, if retirement is not taken out before the $10.5k gets to them, if for some reason (health, etc.) grandparents can't watch the kids, if one of them loses a job and they don't have a sufficient emergency fund. We really don't have enough information.
Anonymous
04/07/2017 16:14
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Anonymous wrote:OP here:
for those asking about net income: i could probably make my exemptions more accurate, but currently it is about
10.5 k net a month
PP: So your PITI would be about 40% of that. For me, that's too tight.
Too high op.
Anonymous
04/07/2017 15:47
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Anonymous wrote:OP here:
for those asking about net income: i could probably make my exemptions more accurate, but currently it is about
10.5 k net a month
PP: So your PITI would be about 40% of that. For me, that's too tight.
$6.5K per month for everything else sounds tight to you?
Anonymous
04/07/2017 15:46
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
What do you use the other 6K for each month?
Car payments?
529?
Student Loans?
We thought we had a buffer and then found out our oldest child had a learning disability that requires us to do private OT(~$350 a month) child #2 gets private speech and OT.
We have an extra $1K a month that covers this - but it comes out of $$ for vacation and upgrades to the house. We are hoping that our youngest will not need to go to private school based on his specialized learning needs.
Car payments?
529?
Student Loans?
We thought we had a buffer and then found out our oldest child had a learning disability that requires us to do private OT(~$350 a month) child #2 gets private speech and OT.
We have an extra $1K a month that covers this - but it comes out of $$ for vacation and upgrades to the house. We are hoping that our youngest will not need to go to private school based on his specialized learning needs.
Anonymous
04/07/2017 15:37
Subject: Re:found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Is this a joke? That's perfectly fine for most people.
+1
+2
+3
Anonymous
04/07/2017 14:40
Subject: Re:found a perfect house but PITI would be 25 percent of our monthly gross income.
Sounds like it could be a little tight to me. If everything continues to go perfectly, you'll probably be fine, but the job loss poster has a good point... how are things going to look for you if you are reduced to 1 income? Will you be able to absorb that easily?
If you have healthy savings (e.g. 12 months of expenses readily available), I say go for it. If not, I'd recommend building up your savings more before extending yourself this far.
If you have healthy savings (e.g. 12 months of expenses readily available), I say go for it. If not, I'd recommend building up your savings more before extending yourself this far.
Anonymous
04/07/2017 14:15
Subject: Re:found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:You know this thread is sponsored?
How can you tell? I only see the sponsorship for the forum itself.
Anonymous
04/07/2017 13:59
Subject: found a perfect house but PITI would be 25 percent of our monthly gross income.
Anonymous wrote:OP here:
for those asking about net income: i could probably make my exemptions more accurate, but currently it is about
10.5 k net a month
PP: So your PITI would be about 40% of that. For me, that's too tight.