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Are the <3.5% rates gone for good?
Coach
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That seems tough but depends on down payment (if more than 20%) and taxes. We make about 375k HHI and bought a 1,150,000 house and it’s tight with no other debt.
It really comes down to how much of a down payment you're planning to make, as this will affect your overall mortgage. Realistically, the more you can put down up front, the more affordable, or not, any home becomes on a monthly basis. That said, a 500k HHI should be sufficient in this case.
Mentor
Yes. However, check your local property taxes and insurance rates. For example. In CA, that house might cost $7,000 a month, where as in TX that same house will cost $20,000 a month
😂 the property taxes in Texas are not 13,000 a month higher than California on a $2M house. I live in a ~$2M house in Texas and my property taxes are about $25k a year and insurance costs are ~$5k. Certainly high, but nowhere near the difference you’re describing.
On a roughly similar household income we make it work. Short commute and schools were important to us and decided it would be worth sacrificing for a few years. It’s certainly feasible, but you need to look at your other fixed costs and decide if it will be too stressful or not.
Coach
You other option is to be slightly less desirable. In 99.9% of the country, $2M is buying a pretty nice house. If you limit yourself to the most desirable zip codes in the county, then houses will be expensive but I bet that within 15 minutes the same house is $1.5M.