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Pre-tax number doesn't really matter. You are looking at like $8,000 take home per month (after taxes, health insurance, 401k, etc). Throw in electric, heat, maintenance, etc and around 40 to 45% of your take home income is going to be towards the house.
I think you can afford it, but its towards the high end of what you can afford.
I hear what you're saying I just never heard it described as a function of net pay. Either way I'm going to try to get some more toward that down payment.
I certainly like Cranford but it's pricey. No kids yet but in the future they are in the plan. Of course nothing is guaranteed.
Pricey right now is just the market cycle. Our budget was more than 25% lower than yours and we have a 3BR walkable to downtown. You just have to move quickly when the listings open up in the early summer. Right now there's nothing, as everyone's in school, but May-June-July you'll see more in your price range (and lower).
But if your in-laws are in Clark? Cranford is sounding better to me for you all the time.
Pricey right now is just the market cycle. Our budget was more than 25% lower than yours and we have a 3BR walkable to downtown. You just have to move quickly when the listings open up in the early summer. Right now there's nothing, as everyone's in school, but May-June-July you'll see more in your price range (and lower).
But if your in-laws are in Clark? Cranford is sounding better to me for you all the time.
I'll keep my eye on it. Family in Clark and wife working in Dunellen is why we like Scotch Plains. Close to both.
Based on the responses so far I would say stay put, invest the 'savings' [Estimated monthly payment minus current rent] and increase the down payment bucket. Then a year or two later buy your home or move and check out other towns.
The biggest advantage you have now vs. owning a home is flexibility. If you are truly unsure of where you can live, why not rent to a town that is top3 in your list right now and see how living there would feel?
Earning six figures with no debt and no kids = the most flexible period of your life. Don't buy a house because life says you need to buy a house. Buy it when you really think you are ready to settle down into a home.
A $400k mortgage will certainly make you house poor. You do not want a mortgage that is >2.5x your annual income. The biggest piece that people tend to ignore when calculating their monthly payments are ancillary expenses that go with home ownership. Some are ongoing: landscaping, snow removal, sewage, water, etc. Others are one-offs: A/C breaks, water heater blows, roof leak, etc. You almost have to add another $5k in annual expenses related to home ownership vs. renting. (Especially if you buy an older home - with a $450k budget that will most likely be the case)
Based on the responses so far I would say stay put, invest the 'savings' [Estimated monthly payment minus current rent] and increase the down payment bucket. Then a year or two later buy your home or move and check out other towns.
The biggest advantage you have now vs. owning a home is flexibility. If you are truly unsure of where you can live, why not rent to a town that is top3 in your list right now and see how living there would feel?
Earning six figures with no debt and no kids = the most flexible period of your life. Don't buy a house because life says you need to buy a house. Buy it when you really think you are ready to settle down into a home.
A $400k mortgage will certainly make you house poor. You do not want a mortgage that is >2.5x your annual income. The biggest piece that people tend to ignore when calculating their monthly payments are ancillary expenses that go with home ownership. Some are ongoing: landscaping, snow removal, sewage, water, etc. Others are one-offs: A/C breaks, water heater blows, roof leak, etc. You almost have to add another $5k in annual expenses related to home ownership vs. renting. (Especially if you buy an older home - with a $450k budget that will most likely be the case)
Appreciate the response but I'm definitely not moving until I'm in a house. Not worth the hassle.
Based on the responses so far I would say stay put, invest the 'savings' [Estimated monthly payment minus current rent] and increase the down payment bucket. Then a year or two later buy your home or move and check out other towns.
The biggest advantage you have now vs. owning a home is flexibility. If you are truly unsure of where you can live, why not rent to a town that is top3 in your list right now and see how living there would feel?
Earning six figures with no debt and no kids = the most flexible period of your life. Don't buy a house because life says you need to buy a house. Buy it when you really think you are ready to settle down into a home.
A $400k mortgage will certainly make you house poor. You do not want a mortgage that is >2.5x your annual income. The biggest piece that people tend to ignore when calculating their monthly payments are ancillary expenses that go with home ownership. Some are ongoing: landscaping, snow removal, sewage, water, etc. Others are one-offs: A/C breaks, water heater blows, roof leak, etc. You almost have to add another $5k in annual expenses related to home ownership vs. renting. (Especially if you buy an older home - with a $450k budget that will most likely be the case)
So which is it. Mortgage 2.5x income or PITI under 28% of gross, because that is a massive difference. Seems like there are different 'rules' wherever you look.
So which is it. Mortgage 2.5x income or PITI under 28% of gross, because that is a massive difference. Seems like there are different 'rules' wherever you look.
If you can get help with the downpayment, and put down as much as possible, maybe your folks or in-laws will help you and are settled in your careers and make an assumption that your salaries will rise by a fair amount, you could use a less conservative model.
If you look at the median household or even family incomes of wealthy towns, they are nowhere near what's required to afford the average house in those towns if you use conservative models.
But anyway, this is just from my experience. I'm far from an expert on the subject and a renter myself.
If you look at the median household or even family incomes of wealthy towns, they are nowhere near what's required to afford the average house in those towns if you use conservative models
So how and who are affording these homes??
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