5yoe post masters, 200k + paper stocks, (not at Lyft anymore). Want top school district for 2 toddlers. Spouse is SAHM. I would be spending half my take home in housing all things considered. The houses I want cost 1.2M. I have the downpayment. Should I do it? Am I nuts? I have $385k in cash and $120k in retirement accounts. Please comment and I’ll reply.
Definitely nuts for a $1.2M home. Don’t burden yourself with something you can’t afford
Don’t do it! You will be house poor based on TC and only one income.
How much is the down payment?
20% at least. Got $375k ready to go
Depends on how much you’re putting down. The question should be “how much mortgage can I afford?”.
I would be very nervous about that price tag with current interest rates and your TC. There are some online home affordability calculators you can use to get an idea. Putting in your 200k TC, a 240k down payment (20%), and no monthly debt (no student loans, no car payment et cetera), this is what I got:
You'll be insanely house poor, closer to 850 makes sense.
Just calculates the mortgage and see how much that leaves out for your monthly expenses. You’ll know then if you can afford.
1.2 might be a stretch. If things go south do you have backup for atleast 6 months?, backup from parents? In future spouse will work? And more importantly if you loose your job withen how many days you are confident to find a new one?
I have $385k in cash, excluding retirement
Working spouse?
No, SAHM. No childcare expenses