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I bought a house in a similar range, I was making a bit more. You should run every number, including bills and maintenance.
The heating and electric bills will be much higher. Houses have a lot of unexpected expenses, I.e. sink leaks, 200-300 just for someone to come look at it. Lawn care, snow removal, tree maintenance, heating/AC maintenance, gutters, etc add all those things up.
Closing costs could be 50k-70k, did you save for that?
I had a similar savings, I put down 10% and used the remaining for closing costs. I also had savings to do some house renovations. My property went up in value a lot, make sure yours has room for that.
I’d think about how long you plan to have this house. At the salary you mention, this payment would make me feel house poor given what I like to spend on discretionary expenses. However, if your current salary trajectory continues, you’ll be fine in 5 years or so and you’ll be ahead of price gains in the housing market at that point (and maybe interest rates are lower by then). So, if you can stand the immediate pain of having such a large chunk of your check taken up by housing, you’ll probably be in good shape down the road. If you’re think there’s a decent chance you’ll be selling again in the near term, I’d look for something that would reduce your payment by 1-2k.
Let’s talk numbers. How much will be monthly mortgage? How much is current rent? Monthly expenses? Got kids? If not, planning to have in the future? How old are you guys?
For a single male, its fine. I bought my house in houston area of the same range , my mortgage+escrow is $5000 or $60000 annually
My estimate is if you spend $40000 out of pocket for your self then $100k/year annual expense out of pocket is fine
I also agree that my renting you can pull more money towards investment ( 401k brokerage etc)
You should run the numbers with a lender but it makes sense to put 5% down and have a higher emergency fund. So that’s 30K down and 70K emergency fund. Dont forget you’ll pay closing costs and supplemental taxes.
The PMI is very low. Ours is only $130 a month.
What’s the advantage of putting less down in this market?
Mentor
$4000+ mortgage would be pretty uncomfortable
I think it will be tight for a while. Do you have other debts? How much will you be able to save with that monthly payment?
Yes that’s plenty safe
What do you pay in rent currently?
Subject Expert
What would that house rent for?
Hey, do you might want to wait a few months. Given the volatility in the market right now, you could end up underwater if you don’t do things right. If you plan to stay in this home for a while, that doesn’t matter as much. But everyone in my REI groups are hesitant to buy right now. At least in my market.
Which market?
What market are you in?
Shoot me a message if you would like representation to help guide you through the process and give advice
I think this would be uncomfortable. I bought a $655k house and put $350k down (family money) and with a 5.5% rate I pay $3600/m. Last year TC was around $205k, this year it’ll be about $250k. My mom lives with us and sends me $518/m so I actually wind up paying $3100/m.
That’s a lot. Why such an expensive house? Is it just you? Can you rent a room to help out with costs?
Just me being extra.
180 down to make emergencies easier
financing 60k cash and increasing your monthly payments doesn’t sound like a good way to prepare for an emergency
Why would I tie all my cash up in a house and leave none
What are your goals? That’s what you need to ask yourself. I wish I had set my self up more for the longer term earlier. If you can stomach a house hack, that could be the beginning of long term wealth and early retirement. With that amount of cash, especially if you buy something that has room for equity opportunity you can set yourself up really well. With that much of your income going to your home, you sig mitigate the amount you can save and invest for long term growth. That said, you may not be interested in investing or any of those things, and your goal is to work a long and fruitful career in a house you love to live in...if that is the case…do it lol otherwise consider how to best align your next big move with your short AND long term goals.
I have 10 homes, never more than 5% down. Either I will be here to pay them off or I will not and my insurance will be. If you like the leverage position of 75-80% that is fine. My last home purchased 2 years ago took 14 months to turn my 5% down to 23% equity when I refi'd the mortgage insurance out (which was like 0.03% of the payment).
Kindly contact me if there is need for funding.
jacewilliams.sbc@gmail.com