Author Topic: What can I realistically afford?  (Read 1036 times)

MrMustache

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What can I realistically afford?
« on: February 28, 2018, 10:02:49 AM »
Hello all,

I posted a while back with some generic numbers and thoughts but wanted to focus moreso on the financial aspect of the home purchase and I guess I'm just a bit nervous.

Income - 120k/yr ,6450/month after taxes - 6% 401k for employer match - SO is at 50k/yr and we still have separate finances so just going off mine for now
Expenses - 2700 a month - This includes everything
Cash - 13k
Debt - Just the car now at 280/month. 16900 remaining. Bought for 0 down like a genius but once I get my plan in place/move into a new home plan on paying this off within 2 years.
Current rental is over in August, not sure I want to stay here another year

Homes are going to be in mid 200 to 300 range. 300 if it's exactly what we want mid 200 if some things need fixed/replaced
If I went with a 300k place it would be ~2500 a month for mortgage (property tax is average 8k/yr) which would put me around 3500 a month total.
Goal would be to catch up to 20% as soon as possible to remove PMI.

I just paid the remainder of the cc's off this week so from March on I will be saving 3700 a month. I should be around 30k saved up by August.
With the unknowns of home ownership is that range doable for us and I'm stressing over nothing?










sailinlight

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Re: What can I realistically afford?
« Reply #1 on: February 28, 2018, 10:42:17 AM »
I think you should check your numbers. A 285k loan at 4% is only $1,360 /month P+I

MrMustache

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Re: What can I realistically afford?
« Reply #2 on: February 28, 2018, 11:03:46 AM »
Was including all the insurance and property taxes in the payment as well

theSlowTurtle

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Re: What can I realistically afford?
« Reply #3 on: February 28, 2018, 11:39:40 AM »
How much are your property taxes? We bought a 295k place and put 5% down. All our mohtly payments are like 1700 total. How much are your current rental costs?

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MrMustache

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Re: What can I realistically afford?
« Reply #4 on: February 28, 2018, 12:00:45 PM »
Rental cost is 1900 for a 1.5 hour drive each way to work. After august it is going to 2075.

The median property tax is 8000. Looking more like 8500-9000 for where we will end up at.

theSlowTurtle

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Re: What can I realistically afford?
« Reply #5 on: February 28, 2018, 02:15:24 PM »
Rental cost is 1900 for a 1.5 hour drive each way to work. After august it is going to 2075.

The median property tax is 8000. Looking more like 8500-9000 for where we will end up at.
Ah, closer to the 3% range, that kinda stinks, silly taxes! You in Texas or something?

I think you still messed up that calculation (added property tax twice maybe?). See the screenshots attached - using a 5% down payment and assuming 5% interest rate (currently around 4.5%), 9000/yr tax, .5%PMI, and $1200/yes home insurance that puts you right at $2500, not 3500

MrMustache

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Re: What can I realistically afford?
« Reply #6 on: February 28, 2018, 02:24:05 PM »
Ahh I mistyped the initial post I apologize. The 3500 I was referring to after all of the bills, utilities. Was anticipating the 2500 a month after property taxes and PITI.

The part I was concerned with is that since I did not do a good job saving up from the young age and basically starting at 29 if that would be to much house on the salary or if that would be a decent range

theSlowTurtle

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Re: What can I realistically afford?
« Reply #7 on: February 28, 2018, 03:11:50 PM »
Ahh I mistyped the initial post I apologize. The 3500 I was referring to after all of the bills, utilities. Was anticipating the 2500 a month after property taxes and PITI.

The part I was concerned with is that since I did not do a good job saving up from the young age and basically starting at 29 if that would be to much house on the salary or if that would be a decent range
Ah, this makes more sense! So potentially $3500/month instead of your current $2700/month.

What are your other monthly expenses?
« Last Edit: April 19, 2019, 11:22:39 AM by theSlowTurtle »

MrMustache

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Re: What can I realistically afford?
« Reply #8 on: February 28, 2018, 03:28:21 PM »
Gas/Electric - 110
Car - 280
Gas for car - 100
Tolls - 40
Groceries - 200
Phone - 80
TV/Internet - 90
Rent - 1800

Total - 2700

theSlowTurtle

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Re: What can I realistically afford?
« Reply #9 on: February 28, 2018, 03:31:44 PM »
So at 3500/month you'd be able to save around 50% . Which according to the shockingly simple math post would put you at 17 years away from retirement. If that is good enough for you then you're good to go. I wouldn't be too worried about getting a start at 29 you are still way ahead of the game