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I was wondering from Rumson residents, former residents, or those nearby- how would middle class people feel living in Rumson?
We're looking to buy a 3br 1.5+ bath ~2K sq ft home from 500-600K and have a hhi of between 100 and 175K. Just me the wife and infant. We're white collar middle/upper middle class in our early 30's.
We love the town and all it brings- and are willing to sacrifice some house size for the trade offs: excellent schools, restaurants, proximity to the water, charm, etc....The low taxes also factor in- as opposed to paying double the rate in middletown and still probably having to pay for private High School.
I'm just nervous that we'd be out of place or looked down upon since we're middle class- not millionaires- we drive toyotas and hondas not benz or Porsches;
How big is the snob factor in town?? I haven't really noticed much during the time spent there- but it's a different ballgame moving there...I'm hoping its not on par w/ Bergen Cty, summit, or Marlboro for instance (at least in my experiences). Would people look down at our daughter in school or extracurricular activities because she'd be driving a hand me down camry?
Thanks for all your replies- this board is a wonderful resource....
I hope you have a SIGNIFICANT downpayment (min 20%). Even if that hhi number you threw up there was net, i dont think thats enough money to buy a 500-600k house with that income with a kid.
Lets say 500k house
100k down (20%)
--------------
Loan of 400k
Rate of 4.25
PI payment of $1967.76
Taxes of $10k/12 months = $833
Home Ins $700/12 months = $59
Total PITI = $2859
Lets say NET hhi is 137.5K (split your difference) = $11,458 monthly net salary. 25% of your net hhi is $2864 which is almost exactly what your total PITI would be in the scenario above. Thats cutting it extremely tight if my assumptions are correct.
That's an excellent question that I would also like to see answered. I think there is a portion of the town where you can get a house for b/w 350K-500K (if you're willing to make some sacrafices) as you say you are.
On the other hand you can get twice as much house in Middletown and you don't have to send your kids to private school. They are very good schools there as well.
Thanks- We're looking at Fair Haven, Holmdel, and south Middletown (Oak Hill, Nut Swamp) also- but Rumson is our 1st choice- esp with the tax rate figured in.
We're just worried about being among the poorest people in town- and being ostracized as such.
Thanks- We're looking at Fair Haven, Holmdel, and south Middletown (Oak Hill, Nut Swamp) also- but Rumson is our 1st choice- esp with the tax rate figured in.
We're just worried about being among the poorest people in town- and being ostracized as such.
I'm so impressed that you can pay 35-40% down payment! You must have really saved! I wouldn't worry about it. The fact that you can save like that means that you might well be richer than many of the people in town. What I mean is, many of those "millionaires" are probably living way above their means.
If you really love the town and it's within your means, I say go for it! Don't worry about the snobs. Those are in every town.
Lets say 500k house
100k down (20%)
--------------
Loan of 400k
Rate of 4.25
PI payment of $1967.76
Taxes of $10k/12 months = $833
Home Ins $700/12 months = $59
Total PITI = $2859
Lets say NET hhi is 137.5K (split your difference) = $11,458 monthly net salary. 25% of your net hhi is $2864 which is almost exactly what your total PITI would be in the scenario above. Thats cutting it extremely tight if my assumptions are correct.
25% of Monthly net income for PTI is actually pretty good. Most mortgage lenders underwriting cuttof for a loan is upto 33%-35% of net income for PTI.
I am guessing the OP was talking gross income not net income as that is generally what people use when talking about hhi. It is very rare for someone to use the figure of net even though that is what a bank will use to determine your mortgage approval.
Quote:
Originally Posted by subban
25% of Monthly net income for PTI is actually pretty good. Most mortgage lenders underwriting cuttof for a loan is upto 33%-35% of net income for PTI.
I am guessing the OP was talking gross income not net income as that is generally what people use when talking about hhi. It is very rare for someone to use the figure of net even though that is what a bank will use to determine your mortgage approval.
No actually i was talking about net. Gross is worthless. When I meant tight, i meant tight with a kid. Which now that i look back, i take back. I am a believer one can comfortably afford their home if their PITI is 25% of their net hhi.
There are some folks out there spending 30-40% gross hhi on housing, ridiculous.
I know you meant net...I meant the OP meant gross.
Quote:
Originally Posted by TonyStarksNJ
No actually i was talking about net. Gross is worthless. When I meant tight, i meant tight with a kid. Which now that i look back, i take back. I am a believer one can comfortably afford their home if their PITI is 25% of their net hhi.
There are some folks out there spending 30-40% gross hhi on housing, ridiculous.
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