SO and I have put in an offer on a house, but before we sign on the dotted line I wanted to check with my anonymous internet friends.
We looked at a large variety of houses in different areas, and in the end we decided to go toward the top of our budget for a house in a great area that would in theory be our "forever house". Maybe we're psyching ourselves out because this is such a big decision, but we definitely want to avoid being house-poor.
About us:
$123,000 combined base income ~$10,000 annual bonus- we don't really consider this in our budgeting/planning, just use it for vacations or splurges.
~$20,000 debt owed on 2 car loans, <3% interest, $410/mo combined monthly payments
(worth noting that we could feasibly go down to 1 car in a year when I finish my graduate degree, but we'd rather just pay off the cars and keep driving them as long as we can)
No other debt.
Our total spending is about $2,500/mo without rent, and our current rent is $1,450/mo. We first starting renting this place when we made considerably less money so we're pretty comfortable increasing our housing expenses, especially since we'll be putting money toward equity instead of rent.
Take home is about $7,000. On top of our expenses we are also each maxing out IRA's, which is $916/mo.
401k: $32,700 Roth IRAs (combined): $25,600 I also have a pension through my job.
(we are both 26 yo)
Cash savings: $42,000
Our offer on the house is $287,500, and we plan to put 10% down, so the total amount of the loan would be $258,750. We were pre-approved at 4%, so our total monthly payments with taxes, PMI and insurance will be around $1700/mo.
We have been saving cash pretty aggressively toward this goal, but after we are settled in, our goals are:
- re-build emergency fund
- pay extra toward principal to remove PMI
- increase 401k contributions, with the goal of eventually maxing it out.
From my number crunching it seems we will have about $2000/mo left over to go toward these goals, so I feel pretty comfortable, but what do you all think?
Submitted May 25, 2017 at 07:48AM by pfinin http://ift.tt/2rTLHQG
