I have gotten lots of value from similar posts in the past and looking for your thoughts on my specific case. Don't want to be house poor. Home price: $1.8m (Bidding included) Down-payment: 30-35% Base Salary: 235k (Single earner, 1 kid family) Stocks: ~350k annually (based on todays exchange rate) Cash reserve: ~1m (Down payment will come form this) No other debt. Monthly payment will come around 7k (including property tax, HOA and home insurance) Thanks in advance!
For sure you can afford it based on what you have been able to save and considering you have no other debts
Yes.. you would need to sell some of the stocks that vest annually though so as to live a "comfortable" lifestyle
Looks reasonable. Go for it (assuming your non-mortgage expenses are manageable).
Nothing extravagant and No expensive hobbies. Kid is pre-school right now, so that will add to expenses soon.
Keep your mortgage payment to 1/4 of your take home, after taxes. If you don’t, you will be house poor. I suggest dumping the full million into the down payment. Your goal should be to not be in debt. You can pay off the other 800k in ten years easy. With no debt, you have tons of options. This is especially important as a single parent.
Go for it.
Easily. If I was in your shoes, I would only put down 20%, or the minimum to avoid PMI, given the low interest rates.
TC is too low. The home can become too much of a burden. Aim for 1.3m max
OP is making $585k annually...
I misread. He’s good to go then. I’d still won’t recommend that expensive of a house though.
What city? If you don’t have other forms of passive income, I’d def strive to set that up first before taking on a 7k/month payment.
Looking at tri-valley area. Dont have any other income source yet. Thanks for your thoughts.
Which trivalley ?
At that monthly payment, no. As a rule of thumb, your monthly housing costs should be salary divided by 40. You’ll need to make a larger down payment to get your monthly payments to ~$5.9k
OP is making $585k/yr so divided by 40 would be $14.6k
Lol what. Bank of America your math is funny
No don’t go for it. Limit to 1.2 or 1.3
No