Wanted opinion recently signed on a home (I can still back out but will lose my escrow).

My total compensation is $194,000 Base + 5-12% bonus. With the locked in interest rate (6.125), estimated property tax, home insurance, my total monthly payment is expected to be $3,200. I signed on the home for 470,000. I have zero debt. After my down payment and furnishing, I will have around 120,000 in my HYS. Hoping to refinance down the road at some point. I am a first time home buyer

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This is very solid. You should go ahead with buying the home.

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You’re not overleveraged.

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You’re in great shape there.

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Context matters whether or not it's a good idea, but you can definitely afford it. I budget based on a 180k salary and I pay $3,900 a month on my mortgage ($2,900 base + $1,000 extra) and it hasn't consciously affected my budget at all.

Congrats!

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Thanks! Appreciate it. Understand context is always a factor, but from the consensus of this discussion it looks like a manageable payment that should fit my means.

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(Cont.) and am worried if I have over-leveraged myself. My alternative option is to rent, which at minimum will cost me around 25k a year. If there is a crash and my home value depreciates, my thought process is that the money I would have otherwise put towards rent would somewhat offset the dip in value.

Nope. I also invest 2800 a month between my retirement and personal investing portfolio. Combined with the mortgage it’s roughly half of my take home monthly pay. FYI I live in an income tax free state

I understand being nervous about it, being your first home and all, but this is a quite reasonable mortgage with your salary.

Have you not been making this salary for very long?

You are also paying the mortgage interest rate on any money that hasn't been paid towards the loan, which is likely more than what you're getting from the HYS.

Your piti is fine for your income. It takes a bit to adjust to that new monthly number if you’ve been living very conservatively to this point. With the assumption you have a good amount down, you’ll be in a great spot to refinance when the rates come back down.

I plan to put 10% down (and buyout my Mortgage Insurance upfront for 2700). Any argument towards putting 20% instead?

OP.. what was your down payment?

I plan to put 10% down (and also selected the option to buyout the mortgage insurance upfront for $2700). My total closing costs are 60k.

The reasoning is since the market is so unstable, I prefer to have that additional ~50k safety net. I am still in position to change my planned 10% down to 20%.

I think you’re in excellent shape. Look at your monthly cash flows.

Buy it!

Also, this post is evidence that we’re not in a recession

One person's experience is most certainly not a sufficient indicator of the economy overall.

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