Did we buy too much house?

  1. If you’re able to put money away for savings then you are ok. If you can’t afford to save then you might have purchased too much house

  2. We are putting away 15% post tax to retirement (Roth IRAs, HSAs, Roth 401ks) not including any matching as well as have a 3 month emergency fund.

  3. Also… assuming they have a fixed rate and don’t take out equity they have locked in their housing costs (+ taxes) for the next 30 years

  4. OP you’re fine(assuming you spend reasonably on other expenses). Normal to freak out when your allocated budget for housing triples! I would say that you really need to beef up your nest egg a bit. 3 months is proving to be too short nowadays. Maybe I’m too conservative here but I would advise to make sure you don’t lose your home in case you’re out of work/can’t work for 6months. Congrats on the house!

  5. I love this thought process. Some months I feel like I spent more than I make but that's forgetting I'm putting almost 20% of my monthly take home into retirement/investment accounts.

  6. The second bullet is something I’ve been coming to realize lately. I’ve been running close on the budget for a few months, but I’m contributing 10% to the 401k and then saving 20% to a savings account and Roth IRA. On top of that, there’s usually an extra 5-8% of ransoms saving endeavors as well. Helps me calm down about being close to the edge lol

  7. I think many people panic a bit right after buying a house. I did and told my dad and he said that he did too. You’re doing all the right things. 👍🏼

  8. Same. I don’t think I slept for a week after we put the offer in on our house because I was so worried it was going to be a huge mistake 😅

  9. It's like when you're used to buying the store-brand cereal, then decide to splurge on name brand! The price freaks you out!

  10. You're high but the biggest risk is "more house = more spending". Bigger house means you'll want to fill it with stuff. Furniture,

  11. Lol we went and spent a few hundred on plants when we moved in... we had to get that ponytail palm and monstera amongst others :)

  12. All things considered they are in a great spot overall with that income, just need to raise the emergency fund...but what you said is absolutely true. I'd say this house is at the upper end of the spectrum I would be comfortable with at that income, because of the margin that can get eaten into by life in general (kids, wanting more stuff, car upgrade, etc.). It's the kind of margin loss which if not kept in check keeps you on that treadmill for longer and can make life events more stressful than they should be.

  13. As long as you don’t have kids and have to pay extra cost for them you should be fine. If not it may be super tight with that mortgage. Kids cost a shit ton! I have two kids and between preschool, extracurricular activities, food, clothes/shoes, school supplies, birthday parties we spend about $2.5k a month on our kids alone! We make about $135k a year and our mortgage is $1.7k a month and we have no debt. Any higher we would not be able to save for retirement, let kids do extracurricular activities and couldn’t do a vacation every year.

  14. i don't have kids, but what extracurricular do you let your children do and how much do they cost? i'm really curious.

  15. We don't have any kids so no worries there. When we do, we will be buffing up our emergency fund even more than the $20k we already have set aside.

  16. I can feed a village with the taxes they take out each year on my pay check. I felt I kept more money in my pocket at 50k a year than I do at 180k a year

  17. See my edit. We are saving 15% of our gross income in post tax retirement accounts so while it’s a larger chunk, we were saving $2k-$3k a month towards the down payment.

  18. Keep in mind that your housing cost is now fixed for a guaranteed 30 years (or until payoff). In 30 years you will be paying that fixed mortgage (minus pmi) with tomorrow’s inflated dollars. Meanwhile rental prices are currently exploding, and you can play around with calculator inputs to guess where they might be after 30 more years of inflation. $3.5k might seem like a lot today but it won’t in a few decades. I assume a rental would be quite a bit more.

  19. the housing cost may not be fixed. if property taxes or homeowners insurance are tied into the cost of the mortgage, that monthly payment may increase at any time.

  20. Not to mention that the increased rental costs are just pissed away dollars into nothing equitable.

  21. You should be fine. You're in better shape than many. You are freaking out due to the payment shock, but what you don't realize is that your rent was abnormally low for so long, especially in relation to your income.

  22. It sounds like you can afford the house with your combined income. But I would increase your savings. The three month emergency fund is great for if one of you loses your job or some other emergency. But I would have more savings so that when something with your house needs to be repaired or replaced, you can pay for it without touching your emergency fund.

  23. We have separate sinking funds built into our budget to account for things that we know will need to be replaced in the next 3-10 years not including our emergency fund.

  24. How are you making more than 12k monthly on 153k income? I make a little more than 200k and my monthly takehome is under 11k.

  25. This guys posting gross, not take home numbers. Honestly I would be uncomfortable with these numbers myself.

  26. I was just thinking this. Wife and I make the same combined income and we would not be comfortable with a house that costs more than $425K. A $3500+ mortgage seems way too high when your take home is under 10K/mo.

  27. Your post did not indicate whether or not you have children. That is definitely a factor. Speaking as an old man of 72 I would tell you that if I had my life to do over again when I was young I would’ve bought as much house as I could afford. You will likely find as your career progresses that your salary also increases. Should that be the case then watch seems I have a burden now will like as the years go by. That said, the Redditor that posted the comment regarding your ability to also put money in savings makes a very good point

  28. I’m fairly old (I’m in my 50s and on my 4th house), and when we bought our first house old timers were recommending no more than 3x gross - I never heard anyone say 2x. So the old timers from my day would be fine with OPs ratio which is almost exactly 3x. Your old timers must be pretty darn old by this point.

  29. Uh... automobiles shouldnt be above half salary. Its a depreciating asset. If you make 60k then yeah a 30k civic is all you should be buying. Even that may be too much. The house is a different story ofc

  30. On paper seems like you are fine…but are you able to have fun money? Can you go out on a date together? How about a nice restaurant? What about a vacation? 3 month emergency fund is great, but what if you lose your job. Can you find another one in 3 months?

  31. Why is PMI so bad? Ours is $60 a month I think. Obviously it would be nice to have gone, but compared to our $2200 mortgage payment…

  32. Can you explain why this is always suggested? Our PMI is less than $100/month, so it’s hard for me to understand why everyone is so keen to get rid of it at that cost.

  33. Wondering the same. I get the 28% is on gross, but in reality their monthly mortgage payment is probably 45-50% of net. That seems way high to me and I wouldn’t personally be comfortable with that % of net going to a mortgage.

  34. That’s what I want to know. Our gross is 17k per month. We bought a $250k house with a $250k income and have a mortgage payment of $1500. Our taxes already went up $1000 a year. We have one child and daycare costs almost as much as our mortgage. It doesn’t seem like they have enough wiggle room.

  35. Is your house the same square footage and acreage of your apartment? If no, not a great comparison to say the other was much cheaper, especially if you needed the extra space.

  36. Almost everyone freaks out at their mortgage payment for the first few years. But your income will go up and the mortgage payment won't.

  37. Taxes go up and recessions happen. I know people who still make less today than they did pre 2008.

  38. THIS. Agree 100%. Net is always the way to go. My measure of financial comfort is always how much fun money do I get after all expenses and savings.

  39. did you put less than 20% down? I’m just surprised the monthly total is $3600 on a 487k house. I’m in a high property tax state and that home would probably be more around $2900 all in per month for me. assuming you got about 5% interest rate too. so I have to assume you guys just put less than 20 down? regardless, this seems fine. Just keep saving in other places. If you guys plan to have a kid or other big life expenses then things could get a little tighter, but presumably your salaries will continue to increase as well which will help a lot

  40. My mortgage 55% of theirs and my monthly payment including interest is barely 900, with propery taxex etc its a 1000, not contingent utilties etc.

  41. If you can live life, save a bit, pension and mortgage, then enjoy..I stressed for too long about these nonsense safe percentages and rules etc. Life can change quickly- enjoy while you can afford it.

  42. Geeze interest rates really make a difference. My wife and I took a $465k loan (75 LTV) a couple years ago and our payments are $2,445 with everything. $1,818 for just mortgage.

  43. Interest rates make a huge difference in these price ranges lmao. Wife and I are getting a $482k loan for our house we are putting 20% down on, and we originally got quoted a 3.3% rate last May when we signed the purchase agreement for the house to build. Once we could finally lock in our rate this past Spring during the build the rate was up to 4.5%. That 1.2% difference amounted to a $700 increase in monthly payments

  44. You’re doing fine. My only advice is to consider refinancing if interest rates ever drop back down below 3%, and to then make sure you have a fixed interest rate.

  45. I don't think you bought too much house, you are well within acceptable levels of spend. You were just used to having a large amount of disposable income, and now you will have to effectively budget.

  46. So your careers (excel jockey and public school professional) and salary numbers are eerily similar to ours. The difference is I bought my place for $205K. My gut reaction is you’re beyond house poor and I know I’d be ubering/side hustling and having my wife working in the summer breaks to make this work.

  47. Oh no, only $1000 to live on after home, transport, saving 15%, food and utilities covered. This is what the majority in the US would call privelege. This sub sometimes..

  48. I think you are just freaking out. With these numbers you are spending well within your means. Hopefully you did not overpay for the house though in this crazy market. But even if you did, if it is your forever home it will not matter in the long run.

  49. I’d be a little nervous, but that’s just me. I feel like no matter what people say, you’re going to respond with, “I’m putting x dollars in here.”

  50. This is what I did. I backed my 401k down to take advantage of just the company match since I’m closing on my first house in a couple weeks. It’ll give me extra wiggle room right now while I feel out what my expenses actually are. Once I’m comfortable, I’ll bump it back up

  51. I'm not sure it matters at this point? What are you going to do if you have? When did you buy this property? Recently I assume. So selling isn't really an option if you have no real equity to break even or make a profit.

  52. You already bought the house, so probably better not to let it in your mind that it was a mistake. It’s really common to have the buyers remorse freak out.

  53. It would be too much for my comfort. I am in favor of basing house payments off of one income. This keeps you out of trouble if someone loses their job, has to go out on FMLA, is on bedrest for a pregnancy, is seriously injured and can't work, wants to stay home with kids, has a family member with medical needs that needs care.

  54. This is where I am! We make a little more gross than the OP and our house payment (including taxes and insurance) is around 11% of our monthly net. I’m a teacher also so I have 12.8% mandatory pension contractions but I contribute an additional $700 ish a month to a 457 and HRA and my husband and and I both max our Roths If we had gone higher we wouldn’t be able to save as much, travel as much or feel truly free. When my husband was laid off during Covid it was all good bc we have based our non saving expenses on one income. I love having the extra money to do whatever we want with. And right now we are throwing extra at the house and will be mortgage free in 2 years. No way we could do all that we do with the OPs numbers!

  55. The amount of people saying a $500/month car payment is a lot is pretty hilarious. A $500/month payment is like a 30k car depending on interest rate. It’s not like it’s a 75k ford Raptor payment.

  56. If it makes you feel better. Me and my GF combined income 130k southern California. Bought a house for 567k. We are comfortable, but no kids.

  57. It does seem a little higher than optimal but not bad. Do you intend to live here long term? Who knows what the housing market will look like in coming years, but in the long run locking in a reasonable payment should serve you well. Not to mention the PMI will eventually fall off. Also, if we ever get a huge dip in rates like the last couple years, refinancing is an option.

  58. Generally speaking 25-30% of your monthly income in a house mortgage payment is manageable. I like to stay tighter myself but this is a good ballpark number .

  59. Always watch the interest rates, if it drops lower than what you have by a half point or more, it can be worth refinancing. We refinanced twice and dropped our payment by almost $400. Last time it hit 2% we dropped to a 15 year and are going to be saving not only time but interest.

  60. How are you an accountant and don’t know that mortgage interest and PMI is deductible? Combine that with property and state tax, HSA contributions, I’m sure there’s more stuff you can deduct, Do you work from home? Does your wife buy her own supplies for work?

  61. We make about the same and have a house payment of $1700. I'd be flipping out. Vacations are too important to me and buying what I want when I want. But some want a bigger nicer house or a brand new car etc. You have to do what's best for you. On paper I'm sure it's within the recommended limits.

  62. In a few years you may be able to get a better interest rate. I bought at about the same price but I am paying a grand less per month with 3% interest.

  63. I think you will be fine. What's crazy to me is I bought about the same amount of house a year and a half ago and my payment is $2,200 all in. Interest rates are a son of a bitch.

  64. I could've sworn that the rule of thumb was no more than 1/3 of your net income? What's up with people basing these rules off gross income which nobody will ever see? Never made sense to me. However the rule of thumb usually is more flexible as your income increases and it's tighter when your income is lower.

  65. Just curious, I'm still new to all this... Why are you doing post-tax retirement contributions? After 129k AGI, you don't get to deduct IRA contributions. Do neither of your work offer a pre-tax contribution? Or are you expecting to withdraw/make more than $153k/year in retirement?

  66. I usually go off net for a better gauge. Seems like you’d be ok if you are saving/no kids. Sometimes I wish I spent a little more for a bigger house. Wife and I make 250k and we only spent 370k.

  67. I love people that have high incomes but are modest with their spending. Materialism is yucky. Don't ever lose that humbleness.

  68. We moved to northern Michigan where we average 120 inches of snow annually. We both drove 2 wheel drive vehicles, me a 14 year old Lincoln with close to 200k miles and she a 2015 escape. We bought snow tires for the escape but wanted something with 4 wheel drive. We’ve already paid off $10k and the goal is to have it paid off in two more years.

  69. Your income should go up, but your monthly payment should stay the same if you have a 30-yr fixed. Even if it’s tight now, it should get better. Plus, at least in this case, inflation is your friend (debt won’t go up, income and house value will).

  70. You asked for frank feedback so I'll just give my first impression which was to ask how someone making a $150k income (and living in a VERY affordable apartment before you purchased) wasn't able to save and avoid paying PMI. That's my deeper "something's wrong here" impression.

  71. Counterpoint, maybe they were investing for the past 10 years so it doesn’t matter. If they saved for 20% vs. say 5-10% that money was just getting eroded every year. PMI can be removed once 20% equity is achieved. I’d rather start investing early and get that snowball rolling as opposed to paying PMI for a little bit.

  72. I think you’re okay. You did mention you make $12k a month, so I guess $3k isn’t that bad. Maximum you can spend a month would be $5k Me thinks. Just don’t have any kids for the time being and you’ll be okay.

  73. Write out a budget with all your expenses and see where you are at. None of your numbers look crazy but the budget is the answer to your question and will calm you

  74. I was in a similar situation with unexpected costs. You are young in your career (corporate accountant title). I’m in accounting as well. You will make more money over time. Things will be okay.

  75. Our combined gross income is similar to this and I am somewhat confused on your numbers. What is your monthly take home?

  76. DTI is very reasonable. Just be sure to remember that is gross income, not net. I would have to make a written budget with you take home income.

  77. You’re going to be fine OP. I was in the same situation (lower interest I assume but similar finances) with my wife and for a couple months I was freaking out just because of the scale of the purchase, but we were totally fine

  78. I felt the same way when i bought my house. I went from paying 2300 in rent to 5000 for a mortgage and escrow. A few years later every is still fine and I haven't had any financial problems. It feels scary but as long as you planned things right you'll be okay.

  79. Your purchase price seems fine too. I think the jump from your low rent to your payment is making you freak a little. Me and my husband are also big retirement savers... And to others it seems maybe we are weirdly poor. But we just save way more than typical Americans do. Which is smart. Because the majority of Americans are not saving enough.

  80. Don't forget that about 60% depending when in your mortgage life will go on the Principal, wish i like to call it a forced savings account :) as your mortgage ages the % increases on the principal. So not only it's a saving account but in the long term you house will appreciate in most case.

  81. Why are you going post tax for all your retirement? Are you really planning on withdrawing more than $150k+ then?

  82. You had a very low rent rate. You will have to budget, so it will feel like you have less discretionary money because you do. You should be able to live within your means though. But you need to readjust your expectations.

  83. I assume you're both young and have wage increases in your futures. If so, it's ok -- it will always hurt to buy at first. It will be painful, but two things are likely to happen: 1) your wages will increase, while your home costs stay the same, 2) you may also have opportunities to refinance, which will significantly decrease your monthly payment. Be on the lookout also for opportunities to reduce your insurance payments. It's a lot of house, but houses tend to be OK investments, so if you can bear through it in the short run, you'll be ok.

  84. Also people seem to forget on this sub but now that you have a house if things go south you can always move out, become a landlord and have the new renters pay the mortgage with the lease. while you find cheaper accommodation.

  85. No one can answer this question except you. Can you pay all of your bills? Do you like the house you bought? If the answer is yes, then it sounds like you didn’t buy too much of a house.

  86. You're just having a moment. That's not a terrible PITI payment, and you can easily pay it. Think of it this way: you've just stopped throwing away your entire rent check every month! Welcome to the homeowners' club.

  87. What do your other bills look like? Student loans? Car loans? What does your future earnings look like? That may also help 3-5 years down the road. Making $153k now but having a top of $200K-$250k in career could change things later as well as eliminating all other debt but mortgage.

  88. That's pretty close to the average home price in my area, and people with less income are making it work. Your monthly payment seems manageable with your income even with the car payment. The escrow payment isn't going to be what puts you in the red. It's going to be another expense or change in income that gets you. Consider any additional discretionary loans or expenses carefully and build up savings where you can. Overall sounds like you're doing pretty well.

  89. Also remember that you’ll be able to refi at some point and knock ~$1k off that payment if not more. Might just take 5 years before you see low rates again.

  90. I know the rule is 28% but I feel like that’s impractical because that’s not the amount you actually see from your paycheck. What is your adjusted income? Are you still able to save towards your emergency fund? We have a mortgage of 3200 with 250k gross income and that feels tight sometimes but we also pay for full time daycare.

  91. My wife and I were in a very similar situation. I stressed the first couple years… the good news was a that your salaries will go up but your mortgage won’t. It started to get comfortable after about two years. The bad news is that everything is more expensive. Be ready for that.

  92. I just wanted to chime in that I would highly recommend a refinance when interest rates go back down. I signed for a home in October for a slightly higher price than you, but my all in (minus utilities) is $2,581. However, I don’t have PMI.

  93. OP, I have extremely extremely similar numbers to you and felt the same when I bought my place in 2020. Now nearly 2 years later and I’ve realized everything’s perfectly fine and we use our place to the fullest. It’s a very rapid delta in your largest monthly expense but you’ll get used to it. Continue paying attention to everything, maybe increase the attention to budget detail for a while, and you’ll be good.

  94. What state are you in? Here in FL, house insurance is going up 50-100%. So, potentially be prepared to pay more when the policy renews next year.

  95. On paper it doesn't look like it but houses can end up costing you more than just the mortgage etc. Only after knowing the condition of your house and whether it suits your needs can an answer be given. Traditionally homeowners refinanced to drop their mortgage payments but mortgage rates are still historically low. Over the next year you will probably decide whether you like living in a house versus renting so much so that you may not care if you have to live a little frugally.

  96. Are both of you paid bimonthly?? Coz if you are, your real gross monthly income is not 12,750 (153K / 12) . It’s 153K / 13 ( 11,769). This is because you have 2 months of 3 paycheck months if you are paid biweekly.

  97. We have about the same combined income and I'm freaking out over a 350k mortgage and less debt. This is an insightful read!

  98. I thought the rule of thumb was to buy something that was no more than 2.5 times your annual gross salary. Anyway, if you’re feeling this way, then that says to me you probably bought something too much for what you could comfortably afford. $382K is about what you should’ve been going for. However, there are a lot of folks reporting buyers remorse when making big purchases, too. Maybe you’re just experiencing that. If you like the house, the neighbors and the location, I tightening your budget and stick it out. The first five years or so are the toughest.

  99. I mean considering you still have more than most people left over each month even after your housing payment, no I would not say you bought too much house. Whether you got a good value for your house is a different question

  100. I’m gonna go against the grain here and say in my opinion yes you bought too much house. I mean you can afford the payment but it’s probably close to 50% of your net monthly income. Utilities and maintenance will likely put you over that. That doesn’t leave a lot of wiggle room if one person loses their job etc.

  101. No you could have went higher easily. This is a great payment for your income and your house will continue to appreciate, as will your salaries.

  102. Just because you qualify for a loan amount doesn't mean you will like making that payment every month.

  103. But what was the price on your parents house? I googled interest rates of when my parents first home (1992) was purchased and it’s around 8% for 30 year mortgages that year. 115k in 92 at 8% shows roughly $1000 mortgage and Zillow shows the estimated value to be 660k.

  104. Almost same gross HH income as me. My note is $2000 a month escrowed on a 15 year note with no PMI and I feel like that's too much sometimes. I don't have any other debts. I save to the point that I enforce an artificial feeling of being broke though. Like I pretty much max my IRA, 401K, and HSA and then save an additional 15% of my take home pay and invest it in my brokerage. Also put $250/month in my toddlers 529 plan. And I pay bi-weekly on the mortgage so its $1000 every payday and that equates to me making an extra payment a year I don't have to.

  105. This is what we do - save as much as possible month to month to give that artificial feeling of living paycheck to paycheck and not pass the budget.

  106. How is your monthly payment so high? Even with a 4% interest rate on a 30 year fixed it shouldn’t be so high. Are you on a 10-15 year ARM or something?

  107. Stopping HSA contributions is a terrible recommendation. The HSA tax advantages are the best. Not too mention you're a young couple settling down and the medical expenses connected to any potential future children will rely in part on the money you've saved in your HSA

  108. You didn't buy too much house if you don't mind being house poor. Some people would rather have a nicer house and not be able to afford to go out whenever they like or take "big" trips. With the information you have provided I would say you have put yourself in a position where things will have to be monitored until one of you gets a decent little pay bump. Not the end of the world if the house brings you greater joy than being able to spend more freely on other things.

  109. Why are you using gross as it’s an irrelevant number? You should be using monthly net income since that’s what you’re actually taking home. People only use gross to make the numbers sound better much like when they state their salary.

  110. I don't think whomever is the teacher would be able to float making a payment by themselves, which is kind of concerning.

  111. The 500 dollar truck payment feels less logical than the house to me, if I am being honest. Not really clear on why an accountant a school teacher need an expensive truck and you'd have way more breathing room each month without it.

  112. My husband and I make $320k (engineer and nurse) our house was $820k with 20% down and our mortgage is only $3300, I wonder why yours is so high.

  113. My wife and I gross about $225k and I can’t imagine having that much of a house payment. That has to be close to 50% of your net pay.

  114. I am around the same salary range. I bought a 550k house. Truth is I HAD to go a little higher (Dallas, Tx) to get something that fit my style. I think you are fine OP. As long as you are able to save some cash every month, I think you will be fine.

  115. Don't forget home ownership involves a lot more than just the mortgage. Maintenance, taxes, and a lot of other things that you don't necessarily pay when renting.

  116. You didn't really give us enough numbers to give you an accurate answer. What's your take home pay? What's your other monthly expenses?

  117. Rule of thumb you can borrow about 3x your income. Including the truck you're pretty close to that, and this is probably what you're feeling.

  118. Something is setting off some alarm bells in my head in terms of total monthly costs. My house I bought for $425k in 2019 is less than $2400 / mo with a starting mortgage balance a bit under $390k (the interest rates for 10% down v 20% down were no different with my lender). I paid about $2500 into points as well to get me to an APR under 3.5% as well. What kind of APR were you getting and what's the mortgage balance?

  119. You are fine. No one can actually afford the house they buy but it all works out. Well, no one is hyperbole i guess but hopefully u get what Im saying

  120. If people with that income worry about a house that cheap then how the heck do normal people get to afford a house? Crazy!

  121. Ya'll are probably okay. Here's the truth: ya'll would have been better positioned with about 100k less house. That's the truth, but like I said you're probably fine. If it were me, I'd sell that truck and buy a car for no more than 15k cash. Get that payment off you, pay down any debt you owe and then bring the E-fund up to six months and after that bring up the investing to 20% and later 25% as promotions etcetera allow or pay down the house first and then bring up the investing depending on what feels good to your brain. You're having buyers remorse and you would have it even if you payed 390k.

  122. You didn't go about this in the best way, that is for sure. I know this because you have PMI. That is wasted money. However, I think you'll be fine.

  123. Unfortunately depending on where you live, PMI is a necessary evil that can't be avoided. It's really difficult to save $100k+ closing costs in a lot of markets and that's what a basic house sells for. It's a sunk cost, sure, but it's better than renting for much longer

  124. PMI is 35 dollars a month. Wasted money is putting 100k plus down on a house in cash when you should save some for upgrades and repairs.

  125. Interestingly enough. My APR with PMI, was lower than the APR putting 20% down. It literally made 0 sense to me, and I made the lender pull the quotes a second time.

  126. If you can get out of your PMI payment, you can start putting away the money you are spending into the escrow account in an interest bearing money market account. I guard my money jealously because I hate the idea of the bank earning interest on my money. In your shoes, I’d drop the retirement savings to the minimum you can get for any 401k match, and start paying into the mortgage until you have 20% equity in your home. Then hit up the bank to get out of the PMI. Once there, rebalance your savings back to where you want it.

  127. I’ve never had a house payment more than 25% of my net income so that payment feels hefty to me. We have no debt and will have $90k financed on our next house and I still don’t like the thought of a $1k mortgage on a 15 yr fixed and will pay it off ASAP.

  128. Too much house refers to the size of the house, not the cost. It sounds like you know you can afford it so you answered your own question.

  129. If you two are paid bi-weekly that housing payment seems like it'd be at least 66% - 75% of a combined single take-home paycheck. That could get hairy in case of a job loss or divorce, for my money I'd try to keep things as close to half a two-week paycheck as possible. Depending upon the available housing stock, $300k - $350k while looking at some $250k - $300k to try and find a steal would be more in my comfort zone with that income.

  130. I would be freaking out too if I was in that situation. That does seem high, but I bet your interest rate was about 5.5%? You can refinance if the rates get back down.

  131. Peak USA moment when an accountant and a teacher have a truck for $500+ monthly. Youcould probably save a fair bit of money by getting a reasonable car.

  132. I make $130,000 myself and purchased a house in 2014 for $240,000. My mortgage is $1,200 and even I think that’s the limit to what I am comfortable with. I firmly believe too many people live beyond their means and when things go sideways they fall apart (3 months of emergency funds IS NOT ENOUGH). To each their own but 3.5k a month for housing seems insane to me especially since you have PMI which tells me you used an FHA loan, so minimal down payment etc. just my two cents but I hope only happiness and good fortune to you.

  133. Probably depends on your other expenses and/or life plans. If you have 2 kids in daycare and one of you has a preexisting condition that causes you to meet your out of pocket max every year then yeah I think you probably overspent. But if you have no kids and are in relatively good health you should be totally fine. If you start adding kids to the mix, things may feel pretty tight. But frankly that’s pretty universal for the middle class having kids these days so I really don’t think you’ve done anything outlandish here.

  134. My family’s financial situation is similar to yours. It’s tight and unexpected expenses require some creativity but it’s manageable. That part was temporary, we refinanced after a few years when rates were low and we’re able to drop our pmi, cutting about 600 off of our monthly. Now we have a lot more breathing room in our monthly. You’re doing the right thing, enjoy the equity you are building and consider a good portion of your monthly is paying your future self with interest. We’ve got over 200k now in equity in just 5 years

  135. You are fine. I felt the same way when we bought our first home (we used every penny of savings and we were really tight for a while) now years later we have bought and sold a number of homes and have a small mortgage on a home we could sell (even in this market) for 3x what we owe.

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