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That is totally insane. We make the same amount,and the most I would consider for a .mortgage is 1200, though we. Qualify for much much more. I just don't feel comfortable maxing out and putting so.much of our salary into a mortgage.
House is literally complete. Would we update a bathroom in ten years sure but the house can comfortably be lived in as is and would hardly need even paint. Location, utilities all are just what we are looking for And every other home in our range seems to have sacrifices.
Also, are you planning on kids anytime soon? That is another huge expense you will need to factor in. Our mortgage is a little less than what you propose, and we make quite a bit more than you. With one kid in daycare there isn't a whole lot left over.
We have family who owns a daycare so the cost is zero for child are in that area. Actual mortgage by itself is 1700-1800. Again CT is not a cheap place to live.
$2700 even with today's low rates. (Including real estate taxes, insurance).
All signs point to a mortgage of about $380-417k. On a 119k pre tax income.
That is pushing it.
Generally want to keep your mortgage to 3x ur income.
Make sure you have 6- 9 months of living expenses if W2. Or 12-18 months if self employed.
So if your mortgage is $2700. Your real living expenses probably is close to $5000 a month. So better have at least $30k in emergency savings after you close on the house.
I wouldn't do it. Two reasons: (1) I would probably wait until I could put down the 20%. (2) I want my mortgage payment, as well as my other bills, to be covered in the event that a spouse loses their income.
My husband and I just bought a co-op in NYC, put down 30% and our mortgage + maintenance costs are less than our last rental. What do you know---less than two months after we purchase the place and move in, I find out that the company I work for (which has been around since the 1800s) is closing down and selling off their accounts. I'll be laid-off in about a month and thankfully our place and all of our bills can be covered by only one of us working.
I know you said you could afford it on just one salary but if 110K is cut in half, I don't see how you could afford a $2700 mortgage plus all of your other bills on 55K, for example. My husband makes a little less than 55K and after taxes/TransitCheck/IRA, he's only netting a little over $2900/month. If we had your mortgage, that's only $200 leftover if I'm not working.
But in the end, it's up to you. I'm just opining away based on my personal feelings. But you're going to do what you want to do regardless. Good luck.
Mortgage would be closer to 360. Again I overestimate as our payment would be in the 2600 range but my budget I overdid expenses and factored a 3000 mortgage.
Sounds like you are pushing the envelope despite little/no expenses. With home ownership, you need a buffer to account for unforeseeable repairs, such as a dead HVAC or water heater, etc. outside of the the fact that you may be able to handle it now, you also need to have a buffer for emergencies such as repairs to a car, medical expenses, temporary unemployment, and saving money towards retirement. Other unpredictable things can include increasing tax rates, cost of food, tolls on roads, and utilities.
It's just best to have a comfortable buffer. My income earlier in my military career was about like yours and my house cost $160k at the time.
I do think it will be tight but with those awesome features (the natural gas, etc.) I would go for it. We have a similar income and here in NH the property tax is high also. Our mortgage is around 1900 BUT when you factor in oil/electric costs our payment skyrockets (our upstairs is electric heat.) I wish we could have found natural gas heat. Keeping our heat at 59 and lower upstairs our bills are 600+ per month in the Winter. We also have a 30 year old septic which could need replacing anytime. I would jump on a house with city services and natural gas.
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Good luck.
