Afford $4k a month mortgage?

Amazon TDKU11
Jul 7 25 Comments

Can I afford $4k a month including HOA, taxes, insurance on $11k net salary ( after max 401k and taxes).

Getting worried it may be more then I can afford. No other debt except $375 car payment.

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TOP 25 Comments
  • Microsoft / Eng kbsbkxb
    If you're worried that it's more than you can afford, it probably is. You have to feel comfortable with that payment for a long time.
    Jul 7 0
  • Google / Eng 🍑☁️
    Is that "salary" actually salary that comes in every month, or does it factor in stocks or bonus? If it's a regular paycheck, you should be able to afford it. If it's like quarterly stock vests or something, I wouldn't go for it.

    I rented a place for a while that I could afford on paper, but had to dip into my line of credit a few times to pay bills because I had factored my bonus into the budget and didn't consider that I'd have to wait a whole year for it
    Jul 7 1
    • Amazon TDKU11
      OP
      Well so it’s base and signing bonus. In year 3 I drop to base plus stocks.

      My thought is $3k or more would go to a 1 bedroom and this it to buy a townhome within 1.5 miles of work
      Jul 7
  • Facebook public2
    11 minus 4 minus .375.
    Jul 7 0
  • Pinger / Eng create💻
    If you just moved here from the east coast, rent. Lots of reasons why.
    Jul 8 0
  • LinkedIn / Eng zSOF23
    Have you considered renting? Easy to get out if things are too tight. House prices in the bay area are dropping anyones guess if that trend will continue or not. IMO too risky to buy right now. Might have to sell for a loss!
    Jul 7 0
  • Microsoft fang2
    Tc details, breakdown? Is your wife working too? Would she contribute your mortgage? Combined tc?
    Jul 7 4
    • Amazon TDKU11
      OP
      She doesn’t have job out here yet but makes $100k on east coast. That’s why we didn’t include her salary as we don’t know what it will be.

      Base $155k signing $66k 75 rsus...tc $225k
      Jul 8
    • Microsoft fang2
      What are your monthly expenses excluding rent eg- food, utility, kids daycare etc?
      Jul 10
    • Amazon TDKU11
      OP
      Car payment $360
      Utilities will be about $100
      And then food and entertainment - maybe $1000 if we don’t budget

      No other debt or student loans
      No kids
      Jul 10
    • Microsoft fang2
      I think if you factor In phone, internet etc, you will be spending 2k per month. With 155k base you should be making 9k after tax. If you get 4K mortgage, you are spending 6k totally. You still have 3k (9-6k) for travel and other things. You have stock, signon bonus anyway that I haven’t counted. So you should be able to afford but you can exceed to 6k if needed.
      Jul 12
  • Airbnb NotAnAlly
    Are you maxing after tax 401k (55k) or just the basic 19k? Start with maxing first.
    Jul 7 2
    • Amazon TDKU11
      OP
      If I did $55k I wouldn’t be able to buy or rent. Rent is near the same price as buying
      Jul 8
    • Airbnb NotAnAlly
      So you're not maxing out 401k then.
      Jul 8
  • Alteryx WBkQ70
    It’s more then 33% but if you have no other debt and you mitigate any extravagant spending habits. Then you should be okay. Will you have any savings on the side? Also, if you plan on keeping the house more than 2 years do you think you can make a profit out of it after selling it?
    Jul 7 1
    • Amazon TDKU11
      OP
      Yes it’s in a good location downtown where the tech employers are
      Jul 7
  • Apple procto
    It will hurt, but you’re probably over $3K for a rental. If you plan to be here more than 2 years, why throw your money in a hole?
    Jul 7 1
    • Amazon TDKU11
      OP
      That was my thought but just nervous as I never paid this much before. My last mortgage was $1800 on east coast
      Jul 7
  • New zphb68
    more than you can afford, pal
    Jul 17 0
  • Netflix Jskfbzkan
    You’ll be fine
    Jul 12 0
  • Intel Benzy
    HOAs are evil, avoid if at all possible especially since you are paying the fees. If you do rent property with an HOA, be sure you read the bylaws and CC&Rs BEFORE signing the lease.
    Jul 10 0
  • Red Hat / Eng johnniewic
    I’d suggest renting in a place closer to the home if possible first for an year atleast. You’ll always get “good” deals. Also, you need to have atleast 1-3% of the home value in your bank for maintenance, etc.. unless it’s a brand new home, you could do 1%.
    The brokers will fool you, so you shouldn’t be surprised of any additional costs for the next year or so re home.
    Renting ain’t all that evil, you aren’t flushing money in drains, you’re getting something out of it and you have flexibility to relocate faster for more TC.
    Jul 8 0
  • Microsoft cz49yx
    Traditional rule of thumb is house shouldn’t be more than 30% of your pay, but it can be wiggled around the higher your pay goes.
    Jul 7 0
  • New / IT metodo
    That's a loaded question. What other debt do you have?
    If you have second thoughts about whether you can afford it maybe it's not a good idea.
    Try saving $4K a month for a few months and throw it in savings, that'll give you an idea whether you can afford it or not.
    Jul 7 0
  • Amgen Fin4eng
    Yes assuming still earlyish in career and salary will rise. At worst you can lower 401k contribution if it is tight. (Assuming no plans to have kids, new car payment, etc that would adjust this)
    Jul 7 0