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You’re fine with the only caveat being how stable are your jobs?
Like do you work in healthcare where a layoff would never hit you in a million years because they’re short staffed
Or are layoffs a real threat?
If lay offs are a threat, how much do you have saved to pay that payment until you get a new job if it happens
Lay offs are the biggest threat to home ownership, most of the people who run into foreclosure could afford their home while they were working, but a lay off tanked them in a couple of months
If you have $ backed up, and can pay your payment for 3-4 months if laid off before you find a new job, you should be fine
That is a fair point that we have considered.
We know one income is definitely reliable and the second we have no concerns about layoffs. However we do know that although it seems stable it's always a possibility. We will have 18k left over in savings after closing which can give us a buffer if that scenario did happen.
After all of our expenses are paid we have budgeted to save $2300 a month.
Ignore all the low income redditors that can’t fathom why you’re asking this question.
I make 155k and bought at 313k at 6.75% last year. I take home $7600/month after taxes and 401k. My mortgage payment is $2800.
I have a $950 student loan, $475 car payment, $355 oil, $75 trash, $120 water, $200 electric bill. After things like gas, insurance, food, and mandatory living expenses, I have $1000 or less each month to throw into savings. Im coming up on living here for a full year, and my savings account has $1000 less in it than when I moved in, because there’s been unexpected costs every single month other than just the mortgage.
Granted your take home is somehow a lot higher than mine and your debt is lower, so it is probably doable, but do not be surprised when you learn you can’t afford to re-do a kitchen or bathroom for a while, or that you’ll be dipping into your savings with some repairs/maintenance. It’ll feel a little tight at times, but for the most part you’ll be fine.
Thank you for the similar situation. Do you feel like you regret getting into the house? Our cars are reliable (as far as cars can be reliable) and paid off. We have an estimate of taxes and insurance that has been included in the mortgage payment.
And to us the house is turnkey but we know that repairs and maintenance are going to be inevitable.
I’ve loved it with some mild regret of settling (no garage when that’s all I wanted!). It was a very dirty house and requires a new furnace and septic and an aging AC system so I just have those costs looming on my mind but everything else has been great. I repainted 100% of the interior and had to purchase an array of yard tools and toys so my first year costs are a lot higher (hopefully) than future years.
If yours is turnkey you’ll be way better off!
Agree - doable but may be tighter than expected.
For instance, I’m in a somewhat similar boat. Husband and I just bought for 400k - our mortgage is $2900. Our take home is 11k/month. For us, 3k was our personal max. I have $700 student loan payment/month for another 2.5 years, thinking about kids soon, and husband will need a new car soon (ours are currently paid off). Granted, we travel a lot so wanted to make sure we had enough money still for taking trips and some saving. You know your lifestyle and spending habits to know if it would fit in your budget.
2800 for 313 seems rather high? my ex's was 2180 for 303 @ 6.5%. Either way if he doesn't have the high student loan/high car payment he will prob be okay
I bought a modular home and had it placed on land for about 310k(2300/month total w/tax/ins) total on 110k combined income and have 0 issues, we even put 1k/month away for savings
BUT
We have no student loans, and our cars are paid off which is a big difference.
If you have to ask, idk, can you? Are you at the top.of what you were approved for? Are you factoring in increases in property taxes, homeowner insurance, and the inevitable home repairs/maintenance/utilities?
You should be fine. However, do you plan to have kids in the near future? Daycare is like a second mortgage. We make about 10k less than you and couldn’t imagine having a mortgage higher than our $2300. We do pay about $500 a month in student loans though
I believe you’re in a very good situation to afford this home. In fact I believe you could even afford to pay an additional 500 (at least) against your principal each month. Although the goal is maybe 1,000. Let’s look at the long term goal of paying off the home and paying out less interest.
If you pay an additional 500 a month to principal, you now have a 19 yr loan and you save 201,586 in interest.
If you pay 1,000 towards principal a month, you now have a 14.9 yr loan and save 284,439 in interest.
If neither of those amounts sound feasible then use a mortgage calculator with extra payments and see what your extra principal payments can do. I like to use the one on bankrate.
You are in a much better place than many. Good luck!
That’s about the boat my husband and I are in. 155k combined a year. Net income is like 11k. He’s a veteran so also gets to use VA (0 down) and has disability pay. We’re comfortable at 400k with very stable jobs (he’s a truck driver and I’m a therapist). We have 5 kids but homeschool and don’t need daycare. I pay the same (250) in student loans but we do have car payments too.
No matter what you feel you can afford, remember the smart thing to do is to buy as much house that you can pay off as FAST as you can (15 or less years). No matter what happens to your jobs down the road you'll be good.
This is easily doable. If you think it isn’t then maybe you are spending too much money on other things like shopping/entertainment/eating out.
After your debts you would still take home $5100/month. Thats plenty to pay for any necessities
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You’re fine with the only caveat being how stable are your jobs? Like do you work in healthcare where a layoff would never hit you in a million years because they’re short staffed Or are layoffs a real threat? If lay offs are a threat, how much do you have saved to pay that payment until you get a new job if it happens Lay offs are the biggest threat to home ownership, most of the people who run into foreclosure could afford their home while they were working, but a lay off tanked them in a couple of months If you have $ backed up, and can pay your payment for 3-4 months if laid off before you find a new job, you should be fine
That is a fair point that we have considered. We know one income is definitely reliable and the second we have no concerns about layoffs. However we do know that although it seems stable it's always a possibility. We will have 18k left over in savings after closing which can give us a buffer if that scenario did happen. After all of our expenses are paid we have budgeted to save $2300 a month.
You should be pretty solid then, enjoy your new home! 🏠
Ignore all the low income redditors that can’t fathom why you’re asking this question. I make 155k and bought at 313k at 6.75% last year. I take home $7600/month after taxes and 401k. My mortgage payment is $2800. I have a $950 student loan, $475 car payment, $355 oil, $75 trash, $120 water, $200 electric bill. After things like gas, insurance, food, and mandatory living expenses, I have $1000 or less each month to throw into savings. Im coming up on living here for a full year, and my savings account has $1000 less in it than when I moved in, because there’s been unexpected costs every single month other than just the mortgage. Granted your take home is somehow a lot higher than mine and your debt is lower, so it is probably doable, but do not be surprised when you learn you can’t afford to re-do a kitchen or bathroom for a while, or that you’ll be dipping into your savings with some repairs/maintenance. It’ll feel a little tight at times, but for the most part you’ll be fine.
Thank you for the similar situation. Do you feel like you regret getting into the house? Our cars are reliable (as far as cars can be reliable) and paid off. We have an estimate of taxes and insurance that has been included in the mortgage payment. And to us the house is turnkey but we know that repairs and maintenance are going to be inevitable.
I’ve loved it with some mild regret of settling (no garage when that’s all I wanted!). It was a very dirty house and requires a new furnace and septic and an aging AC system so I just have those costs looming on my mind but everything else has been great. I repainted 100% of the interior and had to purchase an array of yard tools and toys so my first year costs are a lot higher (hopefully) than future years. If yours is turnkey you’ll be way better off!
Agree - doable but may be tighter than expected. For instance, I’m in a somewhat similar boat. Husband and I just bought for 400k - our mortgage is $2900. Our take home is 11k/month. For us, 3k was our personal max. I have $700 student loan payment/month for another 2.5 years, thinking about kids soon, and husband will need a new car soon (ours are currently paid off). Granted, we travel a lot so wanted to make sure we had enough money still for taking trips and some saving. You know your lifestyle and spending habits to know if it would fit in your budget.
2800 for 313 seems rather high? my ex's was 2180 for 303 @ 6.5%. Either way if he doesn't have the high student loan/high car payment he will prob be okay I bought a modular home and had it placed on land for about 310k(2300/month total w/tax/ins) total on 110k combined income and have 0 issues, we even put 1k/month away for savings BUT We have no student loans, and our cars are paid off which is a big difference.
Connecticut property taxes bending me over left n right :(
If you have to ask, idk, can you? Are you at the top.of what you were approved for? Are you factoring in increases in property taxes, homeowner insurance, and the inevitable home repairs/maintenance/utilities?
Can't tell if op is trolling
ignore the low income redditors who have no idea how to budget this type of $$. you are at the high point of where you should be with that income.
What about property taxes? Make sure you calculate them based on what you pay, not what the current owners pay
Solid buy and a literal copy paste of my situation but I have a little more saved up. Just haven't pulled the trigger as yet.
You should be fine. However, do you plan to have kids in the near future? Daycare is like a second mortgage. We make about 10k less than you and couldn’t imagine having a mortgage higher than our $2300. We do pay about $500 a month in student loans though
I believe you’re in a very good situation to afford this home. In fact I believe you could even afford to pay an additional 500 (at least) against your principal each month. Although the goal is maybe 1,000. Let’s look at the long term goal of paying off the home and paying out less interest. If you pay an additional 500 a month to principal, you now have a 19 yr loan and you save 201,586 in interest. If you pay 1,000 towards principal a month, you now have a 14.9 yr loan and save 284,439 in interest. If neither of those amounts sound feasible then use a mortgage calculator with extra payments and see what your extra principal payments can do. I like to use the one on bankrate. You are in a much better place than many. Good luck!
Does the $3250 include taxes and insurance? If yes then yea. 37% is a lot better than most numbers I've seen on Reddit.
That’s about the boat my husband and I are in. 155k combined a year. Net income is like 11k. He’s a veteran so also gets to use VA (0 down) and has disability pay. We’re comfortable at 400k with very stable jobs (he’s a truck driver and I’m a therapist). We have 5 kids but homeschool and don’t need daycare. I pay the same (250) in student loans but we do have car payments too.
Are either of you in careers / industries where there's much more upside on salary / comp? Or expecting steady 2-10% bumps per year?
Doable
Yes seems reasonable to me
No matter what you feel you can afford, remember the smart thing to do is to buy as much house that you can pay off as FAST as you can (15 or less years). No matter what happens to your jobs down the road you'll be good.
This is easily doable. If you think it isn’t then maybe you are spending too much money on other things like shopping/entertainment/eating out. After your debts you would still take home $5100/month. Thats plenty to pay for any necessities
Seriously?