My husband and I are in the process of picking loan options for our new house. Considering tax and insurance and interest and all that good stuff, our options are either $4300 a month for 30 years or $5500 for 15 years. Annual income before tax is $290,000. No kids (and there never will be) and thankfully no infirm relatives to take care of.
It's a big loan, we are a high income household FOR NOW. We both work very demanding and draining jobs, and neither of us know if we can last at our current jobs beyond 7 more years. Considering our degrees and industries, if we took more comfortable jobs in 7 years, our annual pretax income would be around $170,000 then. With bonuses and our standard industry growth, we will have earned around $2.5m in those 7 years pre tax.
We have no idea if or when we would move, no idea if we can stay in our jobs for decades, nothing is really tying us down to anything. But we do know that to stay sane at our jobs, we need a good cushion of money that can be used on things that make our life easier (vacations, food delivery, cleaners etc). $4300 a month is pretty comfortable now but I'm not sure we will be making anything close to this kind of money in 20 years. $5500 helps us finish this loan off faster but it digs into our available funds to keep us sane more, and makes it so our next jobs have to probably be more demanding than we would want.
I just wanted to talk to someone who knew anything about financial planning and get their opinion on which option they would choose if they were us.
Submitted March 05, 2019 at 11:49AM by smeagolthebagel https://ift.tt/2tTqMiS
