Location: Michigan, USA.
Married couple, 26 year. 1 Income.
Current Net worth ~115k | 0 Debt
Do not touch money:
- 401K ~39K
- HSA ~9K.
Savings - Available to use:
- Checking and Savings: ~33.5K
- Broker account: ~18.8K + 4.5K Capital Gains. Mix ST/LT tax.
- Treasury bonds in home country: ~10K. (Very liquid, I have access using a visa debit card.)
Income:
88,200K/year -> 4,700K monthly take home after save 12% to 401k and 350 to HSA
5K bonus/year
Stable job. My career has potential to increase my income up to 20% in the coming months or years, but I am not accounting on this until I am actually earning that.
Monthly expenses:
- $360 - Car lease payment.
- ~$150 - Car insurance
- ~$40 - Gasoline
- ~$400 - Food/Groceries
- ~$200 - Utilities and services. I guess utilities may increase.
- ~$500 - Miscellaneous
Wanted home:
New construction condo, 3 bed / 2.5 bath.
- Asking price: 340K
- Down payment: 34K = 10% + Closing cost
- Tax: 6.5K/year
- HOA: 250 monthly
Monthly payment: ~2,300/monthly (Includes P&I, PMI, Insurance and HOA).
Considering those numbers: Take Home - House monthly payment - Monthly expenses = ~$700/month left over
I feel this monthly payment a little high to me. I currently pay 1,200 rent for 1 bed / 1 bath apartment.
Even though I would have some extra at the end of each month, I rather would feel better if this extra is higher to cover emergencies or continue saving for miscellaneous things like travel without incurring in debt.
I can increase my down payment maybe to 15% but it has an overall effect of $100-$150 decrease on the monthly payment. Increasing down payment may also harm my E-fund, which I think must be higher than when I was renting.
Market is really crazy now to try an existing home, We bet for a couple, but people was offering 30K above asking price which is a no sense to me. I believe on new constructions you pay for the value, but their prices are also skyrocketing. There are none or very few new constructions under 300K.
Submitted April 30, 2021 at 11:33AM by A-VN https://ift.tt/2QBenPR
