When to buy a house?

May 15 18 Comments

How much savings should one have before buying a million dollar house in the Bay area?

I have 200k in savings and credit score is 800+


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TOP 18 Comments
  • Uber / Eng Trigger
    million dollars. Or else u r technically buying the house for the bank
    May 15 4
    • You do know that the mortgage interest of mortgages up to 750k is tax deductible, right?
      May 15
    • Dropbox pqXT51
      Hey @New, you should read more about IRS and math....

      Let’s play with this for just a second. If you make $75,000 a year and you have a $10,000 tax write-off, that means you pay taxes not on $75,000 but on $65,000. Right?

      If you paid off your home mortgage, you would have to pay taxes on not $65,000 but $75,000 because you wouldn’t be paying any interest anymore.

      You’re going to have to pay taxes on $10,000 worth of income. You’re in a 25% tax bracket. Twenty-five percent of $10,000 is $2,500. Your tax bill just went up by $2,500 because you paid off your mortgage.

      Did I mention that you’re no longer sending $10,000 to the mortgage company? Your tax bill went up by $2,500, but your interest bill went down by $10,000. Did you get this?

      You’re sending $10,000 to the mortgage company to keep from sending the federal government $2,500.

      Sorry, but you are wrong.
      May 15
    • Nvidia coolpm
      @Dropbox, most of the times it’s not just tax write off, it’s the equity build up and appreciation of your home value over the time.
      May 15
    • Dropbox, you must be fun at code reviews.
      May 15
  • Amazon whammy
    When your parents give you the million dollars.
    May 15 0
  • TuneIn WsvF24
    Would be much better if you had 800+ in savings with only 200 credit score
    May 15 0
  • Salesforce benimeoff
    $200k down payment is probably the bare min and even then getting the $800k mortgage could be a stretch. $300-$500k is probably the low end most banks would even consider giving out that sort of jumbo loan.
    May 15 0
  • F5 Networks RRA
    350k or above, ideally. Seriously. Better to have the down payment and an emergency fund left over.
    May 15 0
  • Google 1234-/:;(
    You can liquidate your 401k for more money
    May 15 2
    • OP
      Got only like 20k in that
      May 15
    • Cisco chckde
      That's a bad idea.
      May 15
  • Microsoft no.problem
    When you have money
    May 15 0
  • Salesforce itgulpp
    I just bought a million dollar home in Boston with 20% down. CIT bank in California financed me and they were willing to do no PMI for less than 20% down. So, if it is a great deal and if you have enough emergency funds left over and enough money for your monthly expenses after mortgage and taxes, I'd say go for it.
    May 15 0
  • Apple MRpJ61
    What is your TC?
    May 15 0
  • Amgen / Finance

    Amgen Finance

    The Walt Disney Company
    So given that are there any good short term investment vehicles to park equity while you save for a down payment? We’ll probably gross about $150k on our LA condo but I feel that I want a lower mortgage balance if I buy in the bay at $1mm ish. My plan is to wait till my first year of RSUs vest then buy...meantime I want to put the equity to work in a safe way.
    May 15 0
  • Palo Alto Networks !💥
    Depends on your average income, location, credit score, etc
    May 15 0
  • Cisco 83!ghiw
    Bay Area or outside?
    May 15 0