I make 170k.... can I afford a 540k home?? Calculators say yes but I just can't decide. What do u guys think?

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

Dude, this decides on so many factors. I recommend talking to a certified financial planner who can take a holistic look at your finances. Only someone who knows about all of the diff moving parts and your other goals can answer this. Good luck! Btw, you could consider trying a learnvest cfp for a quick fix

like

With 20% down easily, call it 2% property tax and 1500/yr taxes, a 30 yr fixed @ 4.5% is 2,188/mo mortgage+interest, 900/mo tax, 125/mo insurance for a total of appx 3200/mo. Assume a 25% effective income tax rate and your take home pay is 10.6k/mo. You're right at a third of your take home in housing, which is typically the conservative benchmark for what you can afford

like
Recent IconRecent

Question is if you have the 20% downpayment available.

like

DON'T DO IT! Debt is stupid. You make enough to pay cash for a nice house in most parts of the country. Stop trying to keep up with the Jones'. Look at the amortization schedule for that place, and see how much you blow in interest. The interest is a vacation home, a rental property, and maybe more in about 10 years. That's what I've done (on less income), and now have acquired 5 properties with another on the way. They are all paid for and they pay me instead of me paying the bank. Spend less, make more, get rich, retire early, help others, have fun. You can't do that living paycheck to paycheck. It also gives you the freedom/confidence to tell the MD or Partner when they are being stupid without fear of missing a mortgage payment. That confidence (not arrogance) will do wonders for your career, too. Finally, think about how much time you are actually home in this business.

like

I one time had to eat a $500 water bill cause my prof Landscaper tested the water sprinkler system and set it for 1 hr each zone daily and I have 8 zones! I could have killed the asshole cause his guy didn't know what he was doing.

like

Thanks all! 10 year full tax abatement and geothermal should help with some of the other expenses ... it's a beautiful new construction. I think I'm doing it.

like

How much have you saved for the downpayment?

like

In terms of getting loan.. yes you can get a pre approval for $540K with salary of $170k. But whether it's a good financial decision or not depends on lot of other factors like your monthly expense, any liability/ debt , location of the house etc

like

I bought an apt for 625K when I was making roughly 120K. Also, I put down 0%. 8 years later, my next door neighbor sold his apt for 817K. My net worth has benefited thanks to some ballsy real estate investing!

like

Calculators are deceiving. Each home has added unexpected expenses that needs to have a buffer built in for:
Example. HOA fees, maintenance costs for pool, lawn Defective repairs even with new homes. Look what happened with the Chinese drywall debacle. Next insurances are always rated lower in cost but generally are higher to include fire flood wind mitigation liability. And each year these cost increase by 10%. On average. Now if it's a 2 income family that's closer to 250k then that would work better. Rule of thumb is generally 2x the salary is more than adequate unless your buying in a high market area like NYC or Silicon Valley. Then it's a different story.

like

Here are my thoughts. Yes, it's a combo of how much cash you have for a down payment plus how much you make. 4x gross income is a good rule of thumb, assuming the cash is there.

like

Ouch A1, I've heard it's bad some places which is why I asked. Certainly something for OP to consider. I live on a hill with typical gusts up to 50 mph (near ocean) but no tornados. Old construction built for it so they didn't require extra policies.

like

You make enough to buy a million dollar house, if it's your first. Wells Fargo offers 15% down without PMI. Buy low sell high. Good luck.

like

BCG 1, no, not the full 20%. I could put 15% without feeling poor

like

If you have typical liabilities of people in our world plus the down payment, all day long OP. Don't forget TCO though - taxes, insurance, utilities, etc

like

Costs not cocos. Love spell check. 🤣

like

https://m.drcalculator.com/mortgage/

like

Dad made 110k and bought a house for 800k and he seems somewhat fine. For perspective.

like

Simple answer. Yes you can.

like

http://www.cnbc.com/2017/04/10/couple-that-retired-in-their-30s-share-their-no-1-money-saving-tip.html

like

Related Posts

Love: the hug that my little guy gives me before I drop him off for daycare in the morning.

Hate: the snot schmear from said little guy's hug, pointed out to me during a client presentation.

likefunny

CLA - Do you like the Compt Stipend for wellness? Is it easy to use? How much do you get annually?

like

What will be the in-hand salary?

Post Photo
like

I have cleared all rounds in NTT data, tomorrow i have HR discussion
How much CTC can I ask for please suggest?

Current CTC: 9.5 lpa
Experience: 7 years
Tech stack: .net angular sql (full stack)
NTT DATA

like

I'll kick this off. What does everyone think are interesting / fulfillingn/ prestigious tech roles? What are you aiming for? Product manager? Sales operations? Analytics? Product marketing? Digital strategy?

And why?

likesmart

Any recommendations on brokering app (features and fees included) for trading in India’s stock market ? What has been the experience on signing up to these from out here in US?

like

Pwc AC Hi all,

Two weeks back I was asked to share my documents for an entry level role in PwC AC. However, post document submission I have not received any further communication from anyone in the company. I am really confused and don't know who to contact. Can anyone suggest a solution.

Hello, I am a new grad with a doctorate in OT. I just got an offer for a job working at a private school. The offer is 58K with benefits. 15 days PTO. Do you guys think I can negotiate the salary to 70K, which based on my research is the average pay for my level of experience and education? Or is that too much to ask?

like

Working with an European hedge fund based in Asia investing in emerging markets. What are the chances of relocating to states? Internal relocation is not an option

like

As a new graduate entering advisory— what has been the expected pay? Please include the location. (ATL - 65k)

like

How does everyone balance work and spending time with your SO/dating?

like

Is there any UST office in Gurgaon ?? If yes then where is it ? UST

like

Why is LinkedIn even?

Post Photo
funnylike

Best consulting companies for Healthcare related projects ?

Do all of the Big 4 firm hire FDD or TAS interns?

15+ years experience in Forensic Accounting. What would be considered fair pay in the NYC area? Average yearly Billings was 2,500, however recently took over the building out of systems, training younger staff, more marketing in a set region; basically more non billable work.

like

Just found this bowl. We've been racing autocross and road course in the US for a decade with our modified 1988 Pontiac Trans Am.

Post Photo
like

What is jpmorgan chase first year VP Salary?

like

What’s everyone’s recommendation for a cost effective software to make a case timeline for trial?

like

What is your staff to client ratio? How did you determine when to hire add’l help?
We have $50mm AUM, 400+ clients, one licensed advisor, one unlicensed assistant (FT).

Additional Posts in Consulting

What safety nets are in place to prevent economic collapse in the event we experience a natural disaster that wiped governmental servers that stored things like property records, medical records, arrest data and other important info? Would we all defer back to paper? What if I misplaced my deed? Is someone gonna march me out of my house because someone else claimed ownership?

like

I know this is the consulting bowl, but wanted to reach enough people. Anyone have a connection at Cloudflare? I found a position I am interested in and would love to be referred

like

What’s the cheapest way to get adobe on home computer?

like

I make 125k and got an offer for 200k with better benefit (same col). Should I jump (3YOE)? Fun industry work with a lot more ownership and high visibility but scared to lose flexibility of consulting

likefunny

The most embarrassing ping I've received while sharing my screen in a meeting was:

likehelpful

Went on three dates in last three weeks. Two of them backed out when they came to know that I travel everyweek. The one left was unhappy this morning when I got up at 4 to catch my flight. FML !

like

Quitting a job after working only 3 months, should I list it on the resume?

like

What are the key differences between renting a condo apartment vs. renting an apartment managed by leasing units in NYC.

like

Help! Got a voicemail from the government that my social security has been suspended due to illegal activity. I am confused on what to do. How do I fix it?

likesmart

Luxury babes! Drop some links to the most luxurious, softest, finest sheets you’ve ever slept on. I’m in desperate need of something amazing but the algorithm keeps giving me cheap cotton. I don’t want silk or satin, but something that feels like like that. And water resistant is important too.

likefunny

Cyber security - what requirements, skillsets and certifications do I need to get started? I do not have a technical background, but I have been studying quite a bit on my own and trying to decide what path to focus on.

like

Got a verbal OK for a FB offer that is slated for the Austin office but I live in NY. Can I tell the recruiter I don’t want to relocate and expect to start in NY or will they blacklist me or be flexible? The team sits in Austin and I knew that going in.

like

@EY strategy - Currently in Chicago, maybe thinking of New York, LA,or SF. Any drawbacks for the cities? Might want a change from Chicago...

like

Single parent here, have teenage kids(14 and 17) at home. Any experience with live in Au Pair or Nanny, any pointers on finding good ones

like

Is there only one group in FB or multiple mini-forums?

like

What is the final round at PwC like?

like

Thoughts on utilization? Why is this metric so important in the consulting world, beyond ratings/internal contribution? Should this not be the responsibility of the firm rather than individuals?

like

Does anyone know what brand of pillows Sheraton use?? I want me some of that!

like

Any of the female consultants out there been asked what their "rate" was when having a solo drink at the hotel bar? I mean, I can't help it that I'm popular...

like

Hey guys! Hotel recommendations for Lauterbrunnen, Switzerland from those who have visited please

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal