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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
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
Question is if you have the 20% downpayment available.
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.
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.
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.
How much have you saved for the downpayment?
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
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!
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.
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.
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.
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.
BCG 1, no, not the full 20%. I could put 15% without feeling poor
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
Costs not cocos. Love spell check. 🤣
https://m.drcalculator.com/mortgage/
Dad made 110k and bought a house for 800k and he seems somewhat fine. For perspective.
Simple answer. Yes you can.
http://www.cnbc.com/2017/04/10/couple-that-retired-in-their-30s-share-their-no-1-money-saving-tip.html