Can we afford $3M house?
I thought these questions were useless but I wanted to get some opinions. We are double income, TC at $1.2M because of stock appreciation. We own a house with $1M equity at 3% mortgage rate and some savings in stock/cash (~$1M). We like our house, except for its size (~2000 sqft). There are some really good houses around $3M and Im not sure if we can afford it. Monthly payments for these at the current rate are crazy expensive at around $20k. What should we do? #mortgage #housing
These questions are useless. Not enough info to make any informed decision. Go over to bogleheads if you’re serious.
Downsize to an apartment and work on internal happiness rather than getting approvals from strangers.
This is true
You're good. At 1.2mil TC you can rush to pay things off if desired. You're looking at 100k/month income, and only 20k/month going to this
Sell first house and buy the second with large downpayment so that the monthly payments are reasonable.
Don't listen to anyone that tells you to pay your 3% mortgage off early. Don't do it, stretch it as far as you can.
I agree with that as well, but they would be in a much worse spot if they bought the new place by liquidating their 1M liquid NW and tying that up in new house at 6%. Their total debt will be a lot worse and earning from assets will reduce.
You can easily afford it… go ahead and enjoy the fruits of your hard work
Instead of looking for opinions, how about you do the math?
You can even afford a $8M house
Are you planning to sell or rent current home? Which location are you planning to buy? I doubt you would get more than 2k sqft for 3M
This is WA
Yes
You should learn to be happy with less
I try