Hey all,
I know that the folks here generally recommend people stay within 3-4 times their annual income when buying a house. But I'm curious if it's sometimes advisable to go higher, particularly in areas where housing prices keep going up and up.
About me:
Healthy, No children, 30 years old. Maybe want one child a few years down the road.
No debt at all.
Make 100k a year in a fairly secure field. (Bring home about 2700 a paycheck, 26X per year).
Savings: 80,000 dollars.
I'm a frugal person with a stable partner.
I was told I could get preapproved for up to 710,000 dollar loan...that blew me away.
My dream would be to buy a townhome in a cute walkable neighborhood close to where I work in Seattle. That would be about 600k for a 2 bedroom townhome. Redfin calculators suggest that with a 10% down payment the mortgage costs would be about 2700 dollars a month. That would leave me with 20k (maybe 15k after closing) in savings. That's doable for me, basically one paycheck a month would go for mortgage, I can live off the rest.
House prices have been going up so fast and so much that I'm terrified that if I wait longer, I'll miss a brief window of opportunity here where I actually could get my own place. But is it just a terrible idea to buy something "outside my price range"?
Submitted February 17, 2021 at 07:52PM by EitherAtmosphere https://ift.tt/3s7lgVR
