How much do you have saved up?
Around 130k but I can sell some further assets to get an extra 100k
I think you should save a little bit more. Given that you have 500k house hold income, you will have 300k in six months, then you can buy a house around 1.5 millions. You will have to spend a million anyway, the extra 500k will significantly improve you and your family’s life quality. Comparing to most of the places where people can make 500k income ( I assume you are in Seattle since you work for Microsoft), 1.5 millions is still very cheap. If you have the money for down pay, I’d suggest you get a house over 2 millions.
I think you can def own a house worth 1M. You got enough 20% for downpayment ~$200k.
Better yet, sell a kidney and go for 1.5 million ! Btw op, Both of the above are reckless advice, mine is just more obviously so.
Here is my rule: 2~4x annual family income in mortgage borrowing + 6 months mortgage in savings any time after paying the down payment in case both of us losing jobs.
My houshold income is 350k , we have house of 1.3 M but then we had equity of 300k from old house .
Oh nice! Any financial stress with that situation?
Nope, we have 2 young kids still in daycare but no stress. We ofcource dont have lavish lifestyle or drive fancy cars but i feel very very satisfied to have enough space for my kids can grow up.
Lots of good online calculators there. I would take their number and reduce it by 20 to 30%, just to have more of a cushion, in case you or your partner our out of work.
Why do you have so little money saved up out of curiosity? Are you guys eating out 5x a week and both driving a Porsche or something?
We just switched companies from msft. My partner was an international industry hire and got ridiculously low balled. Our income doubled since. We have also been traveling 3 times a year.
OP you need to manage your finances better. If you dont have enough saved up even on a house hold income of 500k. Taking on additional pressure of a mortgage is not wise.
Yes, I agree with you. As some justification, our combined TC was 310k until 3 months ago... Of which we have saved 220k over 3 years
For the umpteenth time, you need to list your liabilities and not just your income to determine what you can afford.
My wife and I make half of what you make and we got a house for 850k. So, depending on your down payment and you expect both incomes then double. 1.5m. Typical affordablility is 35% total income for your mortgage.
Thanks for the advice! How much do you recommend we save for down payment?
20% unless you want to pay PMI (additional insurance if you pay less than 20 down which does away, it doesn’t go towards your mortgage and is a waste)