Post # 31
Like others said, more information is needed to determine if you can actually afford this.
Darling Husband and I make about a bit more combined, have no dent and spent $235k. Our goal was $250k with an upper limit of $300k. Everyone we met along the way tried to get us to look at $350k houses but we wanted a lot income to mortgage ratio. So for us, $400k would not work.
ETA: looking at calculators online, $1500 seems right for the loan itself if you’re putting down 20%. Just make sure you accout for taxes and insurance. With the average tax range you gave and a conservative insurance rate I’m seeing $2500. That puts you at 20% of your gross income which is within the recommended range. However, not a ratio Darling Husband and I would be comfortable with so that comes down to personal preference.
Post # 32
Sounds perfectly reasonable to me if you have no debt and reasonable spenders. We were making about 150k when we bought a house and took out an approx 400k mortage and had 8k property taxes. We still managed to max out our 401k and Roth IRA, have a nice vacation fund and savings. The easist thing to do is work backwards with your monthly income, subratct out what you think expenses might be, how much you want to save and then see what you have left over that you feel comfortable spending on mortgage/prop taxes. Then figure out what mortgage amount that equates to with current rates.
Post # 33
I’d be more concerned about building cost, as that can blow out easily with all the “upgrades”. Did you get that quote from a builder? And know what are all the inclusions in the build cost?
Im in Australia. Helped my mum build her house (as in liaising with the builder). Everything included was “basic”, if you wanted something slightly nicer, that cost x dollars more. Total build cost ended up being quite a bit more than what she initially was quoted (which was based on basic inclusions).
As for the repayment, there are plenty of calculators online. DH’s mortgage which he took out before we were married, is about $400k, at 3.88% interest, his principal and interest repayment is roughly $1,800 a month. I don’t know if it’s much different in the US. Also he earns $110k and can afford it by himself. So I think without large or unusual expenses and any other loans, $1500 doesn’t sound like should be an issue for your $150k combined salary.
Post # 34
missyjz : This. I’m the daughter of a builder (in Australia) and I can tell you right now they don’t tell you all the inclusions up front.
Much of the time a build includes just the skeleton – the basic build. Does it include tiling, carpets, window finishings, kitchen appliances (oven, dishwasher etc.), skirting boards etc.? What about landscaping and fencing? Brick paving?
I get so mad when I hear these advertisments on the radio like “House and land package for $450k” when it’s like – tell the goddamn truth. Unless you like walking on concrete that $450k will give you a roof over your head and not much else
Post # 35
With no debt, yes I think it’s doable.