Perfect house for 1.3 Milliom

Zulily Cobra_okta
Mar 26 56 Comments

Would you buy a 1.3 million house in bellevue downtown with 200k base income, 10% down and 6300 monthly mortgage payments

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TOP 56 Comments
    • Google mcml
      Why not?
      Mar 26
    • Oath / Mgmt Atinlay1
      OP shouldn’t even have been looking at a $1.3mil home. A $6300 a month mortgage is going to be tight.
      Mar 26
    • Valve / Eng
      delerik

      Valve Eng

      PRE
      Microsoft
      delerikmore
      Rule of thumb is 4 times your gross salary MAX
      Mar 26
    • Indeed hasg61
      Oh gosh. $6,300 a month!!!?? What about traveling and enjoying life??
      Mar 26
    • Microsoft !=l33tc0d3
      Id spend 4000 max on housing per month on 200k income.
      Mar 26
  • Facebook
    Instagrаm

    Facebook

    PRE
    Google, Microsoft
    Instagrаmmore
    Don’t you know there’s always an even more perfect house for only 1.8M?
    Mar 26 0
  • BluVector sparked
    Let us know what bank approves that mortgage so we can avoid it like the plague
    Mar 26 4
    • Intuit ❓🔮❓
      Since originators typically (eg >95% of the time) sell the mortgage debt to another financial institution, it doesn’t really matter.
      Mar 26
    • Oath / Mgmt Atinlay1
      The economy has already crashed once because of this. It’s a better idea to get pre-approved to better understand your budget and not fall in love with a house you can’t afford
      Mar 26
    • Intuit ❓🔮❓
      To be fair, it’s not like OP’s income puts them wildly outside of affordability. It’s on the edge of being too much debt. Back in the day (pre crisis), you could say you had any income, and it wasn’t checked. That was the real problem.

      People making 200k a year with million dollar mortgages were not the cause of the 2008 financial crisis.
      Mar 26
    • Oath / Mgmt Atinlay1
      It does, and he can’t afford it. Hope he never needs a car, a roof, has kids, or can even afford utilities.

      Financial suicide
      Mar 26
  • Uber DemNts
    What about prop taxes?
    Mar 26 9
    • Oath / Mgmt Atinlay1
      It’s ugly. Anyone saying otherwise is lying.
      Mar 26
    • Uber DemNts
      Honestly don't see how, the mortgage is 38% of his/her before tax pay or even less if he/she saves up for 20% down (banks don't raise an eye brow if it's around 33%). Assuming no other debts and no dependents, it's not a bad investment in a prime area with good schools. Far better than throwing that money away in rent. Just be sure to have some security money saved up.
      Mar 26
    • Intuit ❓🔮❓
      Even in hot markets like SoCal, —over the long term— stocks appreciate faster than houses. A $30,000 house in 1980 now worth $700,000 today would be dwarfed by an investment in the S&P 500.
      Mar 26
    • Oath / Mgmt Atinlay1
      You would be literally betting everything on that. It’s a horrible idea.
      Mar 26
    • Facebook public2
      A 30k house in 1980 would be worth about 4m today but generally yes real estate appreciation is lower.
      Mar 26
  • Amazon / Mgmt Db8db4
    Max should be 4 times your annual income (with current interest rates).
    Mar 26 8
    • Groupon / Eng sleepy
      5 times if you can make a down payment of 20%
      Mar 26
    • Uber DemNts
      These are all subjective equations - Dave Ramsey says monthly house related payments should be no more than 25% of take home pay on a 15 yr fixed. That's unrealistic in Seattle / Bay Area. Seriously assess your mortgage, take home pay, savings goals and then make a call.
      Mar 26
    • HPE / Eng 11_d
      @DemNts you're right. Currently I don't see any way of ever being able to own a house in the bay area in the foreseeable future.
      Mar 26
    • Indeed hasg61
      Dave Ramsey is stupid. He is financially TOO conservative. He doesn’t know how to actually play the game, he rather not play it. I can go and tell everyone to cook at home, get a $400 dollar shared apartment, sell their newish car and get a 10yo one and to save until they can pay for their home with cash or have at least 20% downpayment and a 6month safety net. He is no guru, he just knows how to put on a show and spit out common sense plus a bit of extra conservative stuff.
      Mar 26
    • Uber DemNts
      Right, I don't disagree. I'm just pointing out that there are a whole gamut of equations out there on all extremes, you gotta pick what works for you.
      Mar 26
  • Intuit ❓🔮❓
    Money is getting to your head.

    If you really want a house this expensive, save up and put 50% down. At 10% down, those monthly payments will eat you alive.
    Mar 26 2
    • Intel / Eng DonaldDD's
      15 year, 20-30%?
      Mar 26
    • Intuit ❓🔮❓
      Most people do a 30 year for 20% down.

      Again, I said the monthly payments will eat OP alive. Suggesting a 15 year, with a normal down payment of a 30 year, is the exact opposite advice they need.
      Mar 26
  • This comment was deleted by original commenter.

    • Oath / Mgmt Atinlay1
      They can’t afford it
      Mar 26
  • BluVector sparked
    I’m just excited to see a 1.3m house decorated with IKEA
    Mar 27 1
    • Oath / Mgmt Atinlay1
      Or in this case, Zulily
      Mar 27
  • 200k should get you closer to perhaps a 700k house if you don’t want to retire when you’re 82.
    Mar 26 1
    • Oath / Mgmt Atinlay1
      I hope OP already has a car, it’s the last one they’ll be able to buy
      Mar 26
  • Microsoft !=l33tc0d3
    No
    Mar 26 0
  • Intel yhgth
    Family situation? Def not if you are single.
    Mar 26 0
  • Microsoft / Product oeUv00
    Nope
    Mar 26 0
  • New ktFx31
    If you’ve never bought a house before, run. Because in a year after you bought your first, you’ll know what you need and like. It’s impossible to know prior
    Mar 26 3
    • Intuit ❓🔮❓
      As an adult I rent apartments, but I grew up in a SFH. I think I’d have some sense of what I want, if I was to buy a SFH.
      Mar 26
    • New ktFx31
      That’s what I thought too but now I find my house way too big.
      Mar 26
    • Intuit ❓🔮❓
      Interesting insight. Good thing my area’s housing stock is majority tiny bungalows built in the 1920s - 50s. They’re quaint and certainly livable but would be surprised to hear anyone say they’d be too much space.
      Mar 26
  • TuneIn ifyoumakak
    Is $6300 a month including taxes? Or taxes would be another 15K a year? What area is this btw?
    Mar 27 1
    • Oath / Mgmt Atinlay1
      Does it matter? It’s still too much
      Mar 27
  • Amazon AndyJassi
    Cash flow is gonna be horrible. Affects future savings, so unless you are sure about a huge raise in the future I would definitely not do it. This would be hubris.
    Apr 3 0
  • Amazon alexa1
    🤣😂🐺🐒
    Mar 30 0
  • Microsoft / Product oeUv00
    Op, our household TC is little less than 350k, still we were skeptical about 1 M house, but then we also have 2 kids ! . Depends on what situation is, but think twice, thrice.... 100 times before you make decision.
    Mar 26 0
  • Google henhouse
    hard no.
    Mar 26 0
  • Facebook public2
    No, you need 20% down.
    Mar 26 0
  • Microsoft pJcW86
    No lol this is terrible. Unless you're banking on an awesome deal (real estate speculating or enough room to rent out rooms) these numbers are terrible. Rough max estimate is 500k for every 100k you make with a 20% down.

    Minus any other major debt.
    Mar 26 0