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ARKK outch…. below $50
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Is FDD or ITDD more lucrative career-wise?
Conversation Starter
Rising Star
Dash - sell or hold? EoY 2021 predictions?
ARKK outch…. below $50
Is FDD or ITDD more lucrative career-wise?
Conversation Starter
750k-1.2million
Rule of thumb is that your mortgage monthly payment should be around 25% of your total take home pay per month.
Make sure you plan to give 20% down and take 15 year mortgage.
D1 this is incorrect.
Say you're taking out a $300k mortgage. You can do 15 years at 2.5% or 30 years at 3.0%. Assume your ability to invest never changes and is capped at your 15 year mortgage payment.
15 year mortgage payment is $2k a month. You can invest $0 for 180 months and then $2,000 for 180 months. Assume a constant, conservative 6% annual investment return. You will pay $360k on your mortgage ($60k in interest) and you will have $582k in your investment at the end of 30 years.
30 year mortgage payment is $1,265 a month. You can invest $735 for 360 months. You'll pay $455k on your mortgage ($155k in interest) and you will have $738k after 30 years.
In other words, in both situations you'll have a paid off house after 30 years, but you'll have more in your investment if you've been investing from the start than if you wait 15 years. So what if you paid more in interest? Your end state is still better off. Break even on investment return is 3.625% (lower and it's better to do 15y mortgage).
Yes, it is technically leveraging a mortgage to invest in the market, but there's obviously a difference in risk between using low interest debt to invest in a diversified, long term portfolio vs using, say, margin to day trade.
I'd also argue there is value in keeping capital outside of your home. Say you need to put on a new roof in 15 years, when interest rates have come off of historic lows. Even if you don't invest your extra cash, you can avoid closing costs and interest associated with a home equity loan if you have the cash on hand.
The calculus totally changes if interest rates on mortgages get back into the high 4s and above.
Also understand the maximum for a conventional loan in texas is 549k, so you'll need a healthy down payment if you are going over 600k.
Exact same situation
Depends on what you have for down payment. But I would target 3-4K in PITI payment. So 600-900k based on down payment
Let me know if you need a real estate agent! I can give you the consultant discount, haha!
You can get a McMansion. If u want modern homes with tons of amenities like water park and lake check out town lake. Shoot for under 500k. You can get something huge, nice and new for that price. Won’t be in town but it’ll be a McMansion. My wife and I make about the same
Thanks! I’ll check out Town Lake
Depends what city, but you should target somewhere 300-400k at most. This is a starters home, getting a 500k home is a bad idea.
If it helps any, wife and I combined make 230K. Bought 620K house with 160K down in Houston earlier this year.
Nah, I think those are Sienna. I bought in Riverstone. Prices went up another 150K since I signed - though I think it has stagnated and will probably drop some.
We tried to stay well under 20% of our take home for total monthly PITI. 30 year fixed 2.875 @ 5% down. We plan to stay focused on investing in the vanguard total stock market index. Bought little outside the loop for $806k. We did not buy there due to no kids and work commute, but have you looked in pearland? Good luck op - look in the $600k to $800k range.