Closing on a 1.3M house with 20% down and 6.3% rate. Mortgage will be 8700/month. Have an emergency fund of 6-12 months saved in liquid investments. Make ~$300-350k depending on bonus. Base of $250k. MCOL. 34 years old and it’s our dream home for our family so we plan to be here 10 years+. Only other debt is $1k/month. Very financially responsible in all other aspects of life. $350k in retirement accounts. What are your thoughts? What more would you like to know to give thoughts?

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Seems a little tight right now, but if you can afford it for 6 to 18 months and then refi at a lower rate, it will get much more comfortable.

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This is the goal!

I’m in a very similar situation w/ a monthly mortgage that’s about $6700 a month. It’s definitely tight, but we are making it work due to a forecasted growth in income and we needed more space with a kid.

I don’t think $8700 would be impossible, but it probably would mean not contributing to retirement until our income catches up. Right now, we are managing to save about $1600 a month so that is the difference.

If it’s your dream and you feel confident in your income growing, it’s probably worth being house poor for 2-3 years. We love our house, plan to stay in it for at least 5-10 years, and can stay even longer if needed. Just know you’ll definitely be house poor for a little.

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Per paycheck*

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What’s your take home after taxes and all other deduction? & is your wife working as well?

Go with your gut. If it’s your dream home and you plan on staying there a long time, then that’ll be worth it. Like some have said, it’ll be tight for some time, but it’ll get better as you grow in your career and hopefully move up. Sounds like your finances are in order and if it does get really tight, just have a plan in place to find things to scale pack when it comes to monthly spending (less shopping, eating out, etc)

Yes, an update please!

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