Looking at a house that may be a dream house that can last me and my family forever. It’s more than I really thought about spending (aren’t they all) but houses at a lower amount won’t cut it. Some family members are encouraging me to make the stretch temporarily with the thinking that my household will continue to make more money and we can refinance later. Others are saying a hefty down payment to make monthly payments doable isn’t smart. Idk what to do.

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We stretched our budget and cannot emphasize how thankful we are that we did. Love our home. Our HHI has gone up considerably so it worked out. You need to assess how realistic your HHI increase will be and budget for emergencies.

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Numbers matter here.

How much do you have in cash to put down?
What rate are you getting?
Would you buy points?
If you expect rates to go down in the next 6 to 18 months (like most do), what would the payment look like after a refi?

There’s no single right answer here. Everyone has an opinion, but only you know what your budget situation and future earning / refi scenarios might look like.

smart

Where are you at in your career, how much more do you expect your earnings to increase? Mine ramped up big time from my late 20s to early 30s,definitely could have stretched the budget had I known.

We have help from parents and can put up to $200k down to make the payment more manageable. And if we sell our house which we likely will, we won’t deplete our savings. Quoted for 6.375 but with a fee that might not make sense.

$10k a month HHI after HSA, health insurance, and retirement contributions
$600k house ($400-450 loan after down payment)
Looking at closer to 6.6% without fees/buying points

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