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Rising Star
Yes
Super reasonable, even historically the number was ~2-4x your salary. This is right in the money for you. With interest rates what they are this is phenomenal.
Chief
What's the property tax rate?
Bought a 800k house in the bay area with 230k combined income and around 15-20% down
Depends on Property Taxes + Home Insurance + Utility Cost + HOA apart from Mortgage ?
Rising Star
Should be, but other bills could create some challenges...student loans and other liabilities, lawn care, utilities, home improvements, etc.
The mortgage alone shouldn't cause problems.
Rising Star
I bout a $900k home on a $280k base income. I put about 30% down and still feel house poor.
Rising Star
It’s an older title. Didn’t update when I left consulting.
F
Rising Star
Purchased a home at 540, medium/high property tax area, 0% down and have no problems paying mortgage. Income slightly higher but not life-changing amount
Rising Star
No PMI, VA loan
The absolute MAX of your monthly debt payments (including mortgage) should not be more than 36% of your pre-tax household income.
Even then, that number is high because it is pushed by mortgage companies because they want more money out of you.
If you want to be really comfortable, shoot for 20-25% instead.
Also important to consider property tax like the other commenters have mentioned. In some parts of the country property taxes on a $550k home are well over $1000 per month. This isn’t to mention required PMI because you are only putting down 10%
Any renovations needed? Those can be a real problem
Rising Star
Well, it’s only a money pit if I think of it as a money pit...... (it’s a money pit but my wife loves it).
The Mrs and I bought a house for $650k with 10% down 2 years ago in CA when our combined HHI was at $208k. I’d say our expenses were low outside of my student loan repayment of $1.25k/month. We did also have a little one on the way which made them increase significantly with daycare and the like but all in all can say we were able to manage alright
Rising Star
This post doesn’t have sufficient info
Yes
Yes, but depending on taxes, cost of living, your other commitments whether they are student loans, childcare, etc
The rule of thumb is 3x income? That seems more than reasonable.
It really depends on what your expenses are...
Your house payment shouldn’t be more than 30% of you income.
my lord yes
If you’re on this app, the likelihood is your income will increase. House poor is temporary… your house will appreciate and income will go up while your debt is at current levels (sans a depression). Banks use the 45% pre-tax figure to cap your house expense (annual PITI).