Thanks for the thoughts... neither of us are doctors. Attorneys....
I have been thinking about keeping the loan under the jumbo limit. so figuring a loan of about 417 with 100-120 down.
Thanks for everyones thoughts. I appreciate the help.
I am having a tough time quoting but I think someone asked about our current house. Its worth the mid 300's we have a loan at about 230 but have a 15 year mortgage rather than a 30. If we move we will take out a 30 year loan.
As we discuss loans etc with our bank and REA, we get the typical 3X your income thing. so that puts us in the 700s, high 600s if we minus our other debts. We would like to be more in the low to mid 500s, so I wasn't sure if we were underbuying given that this will be out forever house.
Mid 500s gets us about 3000 square feet, updated, in a good neighborhood with good schools.
We are busting out of our house with only 1 kid. With a plan to have a second in 18 months or so (when kid 1 is in school) we will lose our office, which we have to have because my husband works crazy hours including about 40-50 hours a week from home (on top of the hours he spends in the office)
How big is your house now? If staying under the $417k loan limit buys you a nicely updated 3000sf home in a good area, I don't see why you wouldn't go for that. Are there any features you'd be missing out on by waiting for something in the $600k+ range?
We have about 1700 square feet now. We are happy with what we are seeing in the 500-550 range, although oddly it seems like there is a lot on the market for 400ish, and a lot for 650+ but low inventory in the 475-575 range. So it may be awhile until we find "the one" which is fine.
I am thinking about 500-600k. with homeowners and taxes it would result in about a 3 per month payment.
Sorry if I asked a bad question...
I think you can EASILY afford a 3k/ month house mortgage based on your current income (take home), which would be about 30 % take home, making 10k take home per month. My concern would be, how stable is your current income going to be -- said you just got significant raises.... will it last long term. Also, I would put down 20% to avoid PMI -- 20% on a $600k home is 120k -- you could take all your gains from your current home and only some of your savings to put into the mortgage.
After you buy your dream home and settle, I would pay off your student loans -- you will feel so much better when you rid yourself of that debt, good luck!
We go back and forth about paying the student loans. We have considered paying mine (dh is the bigger earner) as an additional "life insurance" if something would happen to him. But with the rate being only 2.5%, I don't know if its the right thing to do.
This year we will totally phase out of the deduction, so that may make it more attractive to pay off.
Post by hannamaren on Jan 25, 2013 20:05:02 GMT -5
We make $220k per year and we have similar costs as you (nanny, SL) and we have $80k saved up and we are buying $650k if we can find it. My H is currently suggesting $750k but I am scared to go so high. However, we live in HCOL and this is a starter home price.
Hanna: what is your monthly take home pay on that? Just curious since you're in CA.
MM shame. I have no idea.
Well, I can guess it is about $9500.... (I take home $2300 every second week and my H makes more than me) And that is after tax, health insurance, and retirement (for me only)
Post by hannamaren on Jan 25, 2013 20:52:53 GMT -5
Yeah, I went to the open house. I didnt like it. I saw another house today. I like it, but my H wont see it until tomorrow. Our property taxes in Toronto are really good (so people say) $600,000 house has $4000 a year taxes. Or less. Supposedly in all the suburbs, it is much more. Maybe booby will weigh in. But in the city, we have a land transfer tax. 3.5% of the property cost. - one time tax. Waived for first time buyers up to $3500 or so.
We are the same age as you and have a similar income and similar fixed monthly expenses (no student loans, but double the day care costs), also in a MCOL area with high property taxes. Our PITI is just under $3000/month, and it is comfortable. That includes principal and interest on a $360k mortgage, plus about $1000/month in property taxes. We spent around $600k on the house, but that was with a big down payment.
ETA -- I just read back over the thread, and our take home is higher than yours (we don't have state income tax, for one thing), but I still think around $3k/month for PITI would probably be fine if you are bringing home $11k.
6 month's emergency fund still in place AFTER closing! 20% downpayment to avoid PMI and lower your monthly payment as well $ saved for closing costs, moving costs, start up deposits, decorating/furniture/appliances, repairs, renovations, yard items & misc. all in hand
Keep housing costs (mortgage+PMI (if applicable) +insurance+taxes+HOA + utilities) no more than 25-28% of your TAKEHOME pay (30-35% in a HCOL area) but keep TOTAL debt payments of all type debt no more than 40-45% of TAKEHOME pay.