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Hello, newbie here
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Houston or Phoenix?
You know you’re a tax accountant if.....
🥺Want some suggestion for busy season!
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Property and mortgage are very different things. A $1M mortgage is insane. Rates on a $1M jumbo loan, if you can get one, is crazy high.
We have a primary residence that is $700k with more than 400k in equity. 3% interest.
We had a ski condo that is 400k with 80K equity. 3.125 interest.
800+ credit score maybe with good incomes? Citi doesn’t charge any to me currently and Wells pre-covid wasn’t charging any with only 10% down.
$1M mortgage at 3.75% interest. We put $250K down from saving for 3 years after getting married, including the money we received as gifts from our wedding. Dual income no kids (yet) of $500K together in HCOL area.
The power of the DINK
Rising Star
OP - To answer your question, I’m a partner.
Whatcha making
No student loans, and we make 300k+ combined salaries (we both with work at Big4)
Me and my SO both work for big firms, property is 900k, mortgage is 700k, interest 3.5% (we refinanced when the rates went down)
For reference I’m a Manager and my SO is Senior Manager in tech and we live in HCOL city, so actually our property is not that expensive for the market.
865k mortgage. 3.375%. Wife and I both make six figures and one toddler. 300k equity
Lived at home for a few years and didn’t pay rent, no student debt (family was poor and I got financial aid), had a significant other ... there’s a game to be played ;)
I wouldn’t want a mortgage that was more than 2x annual earning.
I think that makes sense if you earn a lot, but that’s not possible for most people
My mortgage is 1.6x my salary and it terrifies me.
Lol mike is 4x, that’s why it’s a “30year” mortgage
Initially it was a $700k+ mortgage. Wife and I make $300k+. We have one child and live in a HCOL area (it isn't a mansion).
Underwriting rules require a minimum or 28% debt to income ratio on a pre tax basis. For a $1m that roughly translates to $250k income. But it’s a bit more complicated than that because jumbo loans have more stringent underwriting and could require a higher down/ rate / better liquidity.
Having said that, the limit is pretty doable if you and your spouse/SO are both at a high paying job (150 each) you can easily cross the income ratio needed for the loan.
Rent income
We have a 1.35mm mortgage. We saved for 5 years and put 15% down. Monthly payments, including taxes, are 7600. It’s about 35-40% of our monthly take home pay.
It was a game changer for both of our savings