House Affordability for Modest TC
My spouse and I have a conservatively estimated combined TC of about 320k (270k base but bonuses can vary widely) and we are curious how much others with similar TCs spend on their primary residence. We have no debt and can put 20% down on anything cheaper than 1.3 mil. 800k NW Age - 30 No kids (might have 1 someday) 250k equity in current residence included in above NW Location - Seattle suburbs If you were in our situation, how much would you spend on a home? We would sell our current residence before upgrading. Thank you for the advice!
Back of the napkin rule of thumb is to take household income, and multiply by 3 for how much you can comfortably afford. If you want to uncomfortably afford, go higher obviously.
This is how I think about it as well. Leaves enough wiggle room for unexpected expenses that will certainly pop up
Rates are low, I bet you can go up to 2 million
Spend 600-700, pay it off in 2-3 years then upgrade. Will be way less stress/risk. :)
In that case I would just stay in my current home. Have about 400k left on the mortgage
Imagine how stress free you'd feel with zero mortgage. That's my motivation haha. But I'm a sole provider with 3 kids so I'm looking for a strong financial foundation and FIRE
First of all 270k is not modest TC. That's better than many folks in Blind. With this you can target a house around 1.2 mil
Oh wow. I thought that would be really low for a 2 income household. We are non-tech and just assumed everyone on here made 300k+ individually.
Blind can warp your expectations, that’s a good household TC for non-engineers