My wife and I are planning on buying a new home in the Seattle area. We are looking at about a $800k mortgage and putting $210k down which would bring the monthly payment to $3,500-3,600/month. We have no debt outside of our $600 car payment, save a ton of money, travel, and invest. Our current rent is $2,900. My TC is $250k/year (145k base) and my wife stays at home with our two kids. I feel comfortable looking at the $800k range. Does this seem crazy given my comp and the monthly payment or about normal for the Seattle area?
How much of your tc is variable? Rule of thumb is live off your salary, love off your bonus
Haha I like that. 100k/year in sign on bonus and then rsu.
Suzie orman Says DENIED.
Damnit Suzie! YOLO
You could afford it but do you have enough doe to put down if say you wouldn't work a year or 3?.. recession signs are flashing. You have 3 mouths to feed.
How much will you have liquid after the down payment? Will your total net worth go negative if the housing price tumbles 20%? Are you planning to stay in Seattle for at least 10 years?
Iâll have $50k liquid outside of my investment accounts and 401k after the down payment. It wouldnât go negative if it dropped 20% and I plan on being here long term. Born and raised here and family is super close.
What if u lose ur job?
Whatâs your net worth?
Roughly $450k. 32 years old
Sounds reasonable. I'd try and get rid of that car payment tho
Truth. Thatâs a crazy car payment.
So long as you intend to stay there through the next recession you should be OK. Sounds like youâve got the rest under wraps. Good work.
Did you count property tax in your monthly payment? 3500 does not look right if you borrow 800K with 30-year fixed
They're not borrowing 800, they are borrowing 600 after the down payment
Sorry I got confused. I would say Iâm looking to buy a 800K house and put 200K down. 800K mortgage confused me.
For 140k base, you might be getting around 7.5k net per month. Paying 3500 in 7.5k for home is not my comfort zone. As someone said, Stocks Are lovable but not livable.
Nearly 45% of your take home...not worth it.
You will be literally house poor.
Sounds like youâve got it figured out đ