Post # 1
I’m considering buying a more expensive home so I’m inquiring what the average mortgage payment is for the BEES. Including our mortgage principle and interest and property taxes our monthly payment would be $2,300. That is a $1,000 increase from what we currently pay now. That’s pretty significant but I feel like $2,300 is manageable for us. I’m stuck on what to do!
PS. The new hpuse is spectacular!
PPS. I’m in the Dallas, TX area
Post # 2
Lily_of_the_valley : There’s no way to really advise without knowing:
1. your net monthly income
2. your total debt
3. your monthly costs
4. your saving’s rate and amount
5. your financial goals
Someone who makes $90k per year and has a net worth of 3 million can afford something that someone who makes $65k a year with $18k of debt can’t.
Post # 3
I like knowing that only one of my paychecks can pay all my bills a month so whatever youʻre comfortable with is ideal
Post # 4
danakxox : I’m the same!!!
Post # 5
Lily_of_the_valley : We are in the LA (So Cal) area, so ours takes about 40% of our take home income. But the mortgage is the only debt we have, so we can afford for it to be a little more (plus it’s expensive AF out here!)
Post # 6
Ours is about 11% of our take home pay. The thought was that if one of us lost our job it would still be below 25% of our take home house hold income.
It’s going to be really difficult for bees to give advice without more information.
Also, I recommend updating your poll to include $1001-$1099, $1501-$1599, etc.
Post # 7
You gotta do what’s right for you!
For us, we chose to spend less on our house than we could afford, since we wanted plenty of room for other priorities (retirement savings, 3-4 weeks travel each year, being able to afford the payments on 1 person’s income if we ever had to do so, etc). Not being “house poor” gives me peace of mind, since I’m super-frugal, and feeling like my budget was “stretched” would have driven me bananas! Also a bonus: having smaller mortgage payments helped my Darling Husband pay off his student loans a decade ahead of schedule!
Some questions to ask yourself:
Will you be able to afford it comfortably, including saving for retirement?
How about while also paying for daycare (easily $1-2K/month), if that might be a possibility in your future?
Could you afford the payments (plus the rest of the bills) for 6-months to 1 year on one person’s salary, in case you or Darling Husband lose your job and have to find another?
Post # 8
Ours is about 30% of our take home, and it’s more than $1k more than our previous rent was. It sounded uncomfortable to me but once I looked at the tax breaks, gas savings (shortened my DH’s commute), and looking at our pricipal as savings, it helped me see that it’s closer to parity with our rent than I thought.
Post # 9
LittleByLittle : all great points to consider!
Post # 10
I don’t know why knowing what other bees (who live all over the world and have a huge range of incomes) matters AT ALL.
The important questions are ones you have to answer (and no need to answer on here, FYI)
1. Will you have adequate savings left after down payment? 6-12 months of living expenses is recommended for homeowners.
2. Will buying this house put other financial goals like funding retirement, other investments, saving for kids’ education, etc at risk?
3. Especially important in TX and the Dallas area where home prices are skyrocketing….if the home’s value keeps going up by 10% per year, can you still afford the property taxes 3-5 years from now? 10% increases in annual taxes have been pretty standard across dfw the last few years.
4. Are you comfortable with the PITI payment? By however you measure “comfort” whether it’s living on one income or one paycheck or just a % of total income.
Post # 11
danakxox : one of your paychecks alone or yours + your significant other ( if you’re with someone)
Post # 12
Location makes a huge difference. I would love for only one of the incomes in my home to pay all of my living expenses. But more than that, I love living in California which meant I had to make a decision about my priorities. For me, it was that I preferred to use an uncomfortable amount of our monthly income to pay my own mortgage rather than someone else’s so I’m happy with the results of that decision.
A $1000 leap in monthly expenses is a lot but if the additional space or location you’re getting works for you/your family, then it may be worth it for you. If you’re willing to share pics, I’m always happy to drool over houses!
Post # 13
To me, that sounds like an insane amount for TX. We pay about $2500/month for mortgage and taxes and that’s in MA. My husband from TX and if we moved to TX, we would be aiming for a much smaller mortgage and were even talking about just buying a house in cash and not having a mortgage.
Post # 14
We pay about 900NZD a fortnight, for principle and interest. Rates is extra.
Only do what you can comfortably afford, and evaluate your priorities – is a flash new house a priority, or is using the extra money for travel/leisure spending/etc a priority?
Post # 15
pinkshoes : The major cities in Texas like Dallas and Austin have had such tremendous economic growth the past decade that housing prices are skyrocketing. Still less expensive than most coastal cities but the gap is narrowing. Plus, property taxes are really high in TX (2.5% of property value each year – i.e., $2500 for every $100k in value) so that’s a big chunk of the PITI payment. No state income tax though.
OP’s $2300/mo is a $400k home. That is only a little bit above average for a new/newer home in a Dallas suburb zoned to good/ great public schools.