Try to summarize as best as possible… Household monthly SALARY income post tax $17K/mo Household monthly BONUS income post tax $1900/mo Vested equity and cash reserves $350K Unvested equity $250K (and growing) Monthly Bills plus misc expenses all in $9K We would like to buy a house that is out of our budget at $1.6M putting our mortgage at $11K/mo with a zero down VA loan. This puts us short $3K/mo with 20K out and 17K in (salary). We can float this with savings and variable portion of income (equity/bonus) for a few years. We figure we can just deplete some savings until a couple years when a refinance would be favorable and help close that gap without dipping into savings (along with higher incomes, hopefully ). Household has very stable work/income and the house is solid and well located, great investment. Is this an acceptable strategy? To use savings to help with an unaffordable mortgage in hopes of better rates in a few years? Or are we batsh** crazy?
11k/MO is for long long tenure, all your reserves are for foreseeable future, not for 20 years.. A lot change during 20 years.. Tech industry may get commoditise and you may never get good salary while inflation stays afloat and you struggle later. Your partner or you may choose to do child support instead of job.. You don't want to get strangled if such things happen.. I would say make a choice which makes you comfortable today, if future comes out favourable, you can upgrade later
Yeah that’s crazy. The loan is too large. It’s too much leverage. You could end up in a situation if you fall upon poor health or lose your job.
Go for $1M house … what happens if one of you loses job?
While 17k post tax is a good income, 11k on mortgage is too high Mortgage should be around 6k to 7k max.
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