Hey all,
I am in what I feel like is an extremely rare and fortunate position of deciding whether or not it's time to buy an apartment in NYC.
Personal I plan to stay here for more than 10 years. My family is a short train ride away, and job opportunities are plenty (Software Engineer). My career is well on track and if I needed to find a new job, it would take maybe a month. The main reason I want to buy is to lock in my housing costs and stop moving further from work.
Financial
Salary: $160k (7-10% raises not uncommon)
Savings (cash / easily liquified): $140k
Debt: None
I've been reading a lot of blogs and using calculators that recommend applying for a mortgage that keeps your debt to income ratio at 25-30% of your salary. Assuming a 20% down payment, that puts me in a position to apply for a mortgage on a home in the 600-700k range. (I plan to save some more to retain an emergency fund post-closing.) That would get me nice 1BR or an older 2BR further from a train in my neighborhood.
To me this seems crazy. I rent right now for $2,675/mo, which is very comfortable, but all-in-all that would cost about $3,600~ a month with taxes and condo fees. That would not impact my savings at all, but this is so new to me I worry I'm misinterpreting this advice. I'm not trying to go into a bank and take as much money as they'll give me. Is it crazy?
Thanks!
Submitted March 16, 2018 at 09:31AM by mortgage_thrower http://ift.tt/2HDiErD
