800 K house for my income?

[Finallystoppedlurking]

Jumbo loans just got a lot harder to come by ... wells fargo is stopping the practice.... will be interesting.

[Hemlock140]

Originally Posted by prospectheightsresident

Yes, you can definitely make the math work. You have to ask yourself if you're willing to give up some of the luxuries that you are used to now in order to make it work. And this takes on even more meaning with a child on the way.

Don't underestimate the costs of raising a baby - diapers alone are $80-100/month. Childcare for a two year old can be as much as $2,000/month now, in two years it will no doubt be more. I would go ahead and buy, but look for something in a more affordable price range, say $500k. By the time your baby is ready to start school you'll have equity and can move up.

[komson333]

Thanks everyone for responses.
I calculated that we need to pay monthly $3850 (it includes mortgage body+interest rate, home insurance, HOA, taxes). Our income after tax is $10000, so we will have $6150 per month. We spend per month now approximately $4000:
- food - $800,
-car payments and taxes + gas: $1000,
-wife's education monthly (for the next 2 years): $1350,
-utilities: $300,
-phone/internet: $200.
We almost don't spend money on restaurants, entertainments.
So, we will have left per month $2000. At the time my wife will study we will not use daycare.

[spencgr]

Originally Posted by komson333

Thanks everyone for responses.
I calculated that we need to pay monthly $3850 (it includes mortgage body+interest rate, home insurance, HOA, taxes). Our income after tax is $10000, so we will have $6150 per month. We spend per month now approximately $4000:
- food - $800,
-car payments and taxes + gas: $1000,
-wife's education monthly (for the next 2 years): $1350,
-utilities: $300,
-phone/internet: $200.
We almost don't spend money on restaurants, entertainments.
So, we will have left per month $2000. At the time my wife will study we will not use daycare.

That 2k will be quickly eaten up by the cost of care for the baby and additional utilities and upkeep of the more expensive home. And then you have nothing going to savings.

[phobos512]

Originally Posted by komson333

Thanks everyone for responses.
I calculated that we need to pay monthly $3850 (it includes mortgage body+interest rate, home insurance, HOA, taxes). Our income after tax is $10000, so we will have $6150 per month. We spend per month now approximately $4000:
- food - $800,
-car payments and taxes + gas: $1000,
-wife's education monthly (for the next 2 years): $1350,
-utilities: $300,
-phone/internet: $200.
We almost don't spend money on restaurants, entertainments.
So, we will have left per month $2000. At the time my wife will study we will not use daycare.

You make $2K less than my wife and I per month. We are looking at <$650K with a preference for <$550K. We are also expecting. How do you intend to pay for college for your kid(s)? Don't you want to sock money away in a 529 plan? What about retirement? Also, while you say you don't spend money on restaurants or entertainment, I really don't think that $800/month is a reasonable budget for food. We budget more than double that.

[HereinVA]

Originally Posted by komson333

Thanks everyone for responses.
I calculated that we need to pay monthly $3850 (it includes mortgage body+interest rate, home insurance, HOA, taxes). Our income after tax is $10000, so we will have $6150 per month. We spend per month now approximately $4000:
- food - $800,
-car payments and taxes + gas: $1000,
-wife's education monthly (for the next 2 years): $1350,
-utilities: $300,
-phone/internet: $200.
We almost don't spend money on restaurants, entertainments.
So, we will have left per month $2000. At the time my wife will study we will not use daycare.

Who is going to watch the baby while your wife is in class/studies?

Don't underestimate the toll sleep deprivation will take on both of you; you may end up resorting to take out/restaurant food a lot more because you are both too tired to cook/clean up after.
Also consider the cost of formula and diapers.

[sonnymarkjiz]

Originally Posted by phobos512

You make $2K less than my wife and I per month. We are looking at <$650K with a preference for <$550K. We are also expecting. How do you intend to pay for college for your kid(s)? Don't you want to sock money away in a 529 plan? What about retirement? Also, while you say you don't spend money on restaurants or entertainment, I really don't think that $800/month is a reasonable budget for food. We budget more than double that.

I agree with this post. I honestly think OP might be stretching themselves thin here with little to nothing to put into a rainy day fund. If I were OP, I'd look for 650K house max.

[Ffxdata]

Originally Posted by phobos512

You make $2K less than my wife and I per month. We are looking at <$650K with a preference for <$550K. We are also expecting. How do you intend to pay for college for your kid(s)? Don't you want to sock money away in a 529 plan? What about retirement? Also, while you say you don't spend money on restaurants or entertainment, I really don't think that $800/month is a reasonable budget for food. We budget more than double that.

I agree.

Also, never make a purchase including money that you think you’ll make in the future, like your wife’s income. There are plenty of people who have every intention of working after having a baby who then don’t return to work until their child or children enter school.

Also, there is a lifestyle with an $800k house. That’s maid once a week territory. That’s never mow your own lawn territory.

I would never want that heavy of a yoke around my neck.

[komson333]

I see your arguments. Thanks. Too bad, I really liked the house and location