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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
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Re: Reasonable mortgage payment for salary
Too high for my comfort.
DH and I make more than that, have one in daycare and another on the way and our mortgage is much less than that (we live OOS now). I would not feel comfortable with that mortgage-savings (retirement, college, general) is important to us and a mortgage at that level would make it difficult. Also, it would make life more stressful-things come up, things break, we like to take vacations and have a few of life's extras and I think a mortgage that size would make all of that more difficult.
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Posted 8/22/09 2:48 PM  |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Reasonable mortgage payment for salary
That doesn't leave much $$$ on the table at the end of the month. Owning a home is expensive. Not just taxes/mortgage...but all the other little things that come up that you didn't anticipate.
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| Posted 8/22/09 2:50 PM |
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amber1
LIF Infant
Member since 4/06 190 total posts
Name:
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Re: Reasonable mortgage payment for salary
Just an interesting point- a mortgage and taxes of 3000 is less than 28% of gross income (which is the low end of what people say your mortgage and taxes should be of gross income). Thoughts?
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| Posted 8/22/09 3:15 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Reasonable mortgage payment for salary
Absolutely not in my opinion. Daycare for two kids on Long Island is $2400 a month. DH and I make just over $150K a year and would struggle to afford that much of a mortage plus daycare plus all your other expenses.
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| Posted 8/22/09 3:18 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Reasonable mortgage payment for salary
Posted by amber1
Just an interesting point- a mortgage and taxes of 3000 is less than 28% of gross income (which is the low end of what people say your mortgage and taxes should be of gross income). Thoughts?
It's the cost of the daycare though that is why it doesn't make sense. It's not that the mortgage is not afforable at that salary, it's that daycare on LI is so darn expensive.
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| Posted 8/22/09 3:19 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Reasonable mortgage payment for salary
I personally think that the "old" debt ratio of 28-38% of your income is still best to look at what you can afford.
28% if you have other debts (student loans, car loans, etc..)
38% if you don't have other loans, monthly obligations.
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| Posted 8/22/09 9:03 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Reasonable mortgage payment for salary
Posted by charon54
Posted by amber1
Just an interesting point- a mortgage and taxes of 3000 is less than 28% of gross income (which is the low end of what people say your mortgage and taxes should be of gross income). Thoughts?
It's the cost of the daycare though that is why it doesn't make sense. It's not that the mortgage is not afforable at that salary, it's that daycare on LI is so darn expensive.
Very true! The killer here is the daycare.
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| Posted 8/22/09 9:21 PM |
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Agape08
LIF Adolescent
Member since 10/08 807 total posts
Name:
Kathy
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Re: Reasonable mortgage payment for salary
I would think it's a little tight b/c there are a lot of expenses that come along with homes....for example, our oil bill is almost 1k a month in the winter...so you have to take that into consideration too! then electricity in the summer time, etc.
Our combined salaries are more than that and our mtg is close to the amout you posted and it is tough! don't get me wrong, we still go on vacations, etc. but we are definitely on a budget!
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| Posted 8/22/09 10:13 PM |
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laurabora
LIF Adult
Member since 4/07 2712 total posts
Name:
Laura
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Re: Reasonable mortgage payment for salary
I think it would be pretty tight.
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| Posted 8/23/09 12:36 AM |
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computergirl
LIF Adult
Member since 5/05 3118 total posts
Name:
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Re: Reasonable mortgage payment for salary
My DH makes that amount, and we have zero daycare costs since I stay home with the kids, and I still would not opt for a mortgage that high. We pay about $2600 a month including taxes and homeowner's insurance. To me, I like to live modestly enough to always be able to save, and also to allow for possible increases in monthly expenses as time goes on. And God forbid what if one of you is unemployed for a while?
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| Posted 8/23/09 6:42 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Reasonable mortgage payment for salary
I think you'd be stretching it.
Remember on Li as a general rule your property taxes will probably increase at a faster rate than your income, the same goes for LIPA.
When we bought our house in 2004 heating oil was less than $2.00 per gallon, 2007 it was over $5.00 per gallon.
Just an example of how some of your monthly expenses can skyrocket in short amount of time.
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| Posted 8/23/09 7:44 AM |
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CunningOne
***
Member since 5/05 26975 total posts
Name:
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Re: Reasonable mortgage payment for salary
IMO, I think it's too high. I would aim for something less than $3K. There are always tons of things coming up with homeownership, and I would want to have a cushion to work with.
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| Posted 8/23/09 11:05 AM |
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shapla79
Where Does The Time Go?
Member since 11/07 4619 total posts
Name:
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Re: Reasonable mortgage payment for salary
The mortgage sounds too high. The cost of home maintenance and emergency repairs that come up coupled with the cost of daycare doesn't leave you much to bank into savings or spend on other items you'll need month-to-month.
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| Posted 8/23/09 1:11 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Reasonable mortgage payment for salary
if you had a 3500 mortgage and 2200 daycare (that's what we pay for two kids) it leaves you with about 3000 a month
utilities, fun, savings, retirement, car loans, student loans, etc
so I think it depends on your other expenses.
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| Posted 8/23/09 6:11 PM |
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LAMGAJ28
.
Member since 10/05 6039 total posts
Name:
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Re: Reasonable mortgage payment for salary
It's not doable at all.
If you don't have to pay for childcare, there's room to do this but having to pay for childcare for 2 children, it's impossible. Maybe with 1 child in daycare....but it will be tight.
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| Posted 8/23/09 10:16 PM |
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k-diggity
stay classy.......
Member since 6/08 1332 total posts
Name:
: )
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Re: Reasonable mortgage payment for salary
I would look for a cheaper house -- with daycare costs that mortgage is too high
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| Posted 8/24/09 8:29 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Reasonable mortgage payment for salary
there is no way I would be comfortable paying that much of a mortgage AND day care for two children.
that is waaayyyyy tooo hiiiggghh
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| Posted 8/24/09 10:27 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Reasonable mortgage payment for salary
Posted by Erica
if you had a 3500 mortgage and 2200 daycare (that's what we pay for two kids) it leaves you with about 3000 a month
utilities, fun, savings, retirement, car loans, student loans, etc
so I think it depends on your other expenses.
if you max your retirement contributions that leaves you with almost nothing.
No way..
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| Posted 8/24/09 10:32 AM |
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Rycois
Blessed with 2blue/2pink
Member since 12/05 13341 total posts
Name:
J
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Re: Reasonable mortgage payment for salary
I think it would be EXTREMELY tight - if not impossible.
Here's my calcuations for basics basing it on the middle number ($3250). If you make $150K combined, you're bringing home say $8125/month (if not less from 401K etc.)
8125
- 3250 mortgage/taxes/homeowners
- 2500 daycare (could vary but it's what I'll be paying around so I'm basing on this #)
- 250 car lease payment avg (assuming you own one out and lease one)
- 260 avg for water, heat & electricity
- 500 groceries/Rxs/diapers/MD copays
- 150 cable/internet/phone
- 150 gas for cars/commute
(or a lot more for LIRR if that's what you take)
- 50-100 gifts
- 100 cell phones
- 300 insurances (car, life, etc.)
This is no debt and really just basics, and all I can think of but I'm sure there is more.
It leaves you with nothing really.
So, I GUESS, it Could work - but be extremely tight and that's not factoring in home mainenance/car breaking down, etc.
Message edited 8/24/2009 12:09:00 PM.
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| Posted 8/24/09 11:53 AM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: Reasonable mortgage payment for salary
Posted by LSP2005
To me, no, it is to much of a monthly mortgage. I would think 2500 a month is more reasonable if you also have child care costs. I mean, if you don't save for retirement or any fun things, yes, then perhaps someone could technically afford it, but it would be way to close for comfort for me personally. I would also take into consideration if they also have student loans or cc debit too.
I agree, thats pushing it. And what happens if one loses their job? It looks good on paper but not in reality...
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| Posted 8/24/09 11:54 AM |
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skinny
3 boys and a princess!
Member since 11/08 8178 total posts
Name:
Momma
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Re: Reasonable mortgage payment for salary
I guess it depends on your other expenses like some PP said. It could be do-able if there was any possibility of additional income---is there an apt in the house? Can you or Dh do PT work on the side? Is there any way to lower any of your expenses?
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| Posted 8/24/09 12:06 PM |
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sleepie76
enjoying every minute
Member since 12/07 3881 total posts
Name:
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Re: Reasonable mortgage payment for salary
Too high.
You have to consider all the other bills too.
We make a little over the $150k mark and have a $2,500 mortgage right now. I wouldn't want to go any higher. We have a baby on the way & I'm already stressing the daycare costs.
You have to consider all the other bills that come along with a house. We pay out an additional $1k each month between lipa, car ins, cable,gas, etc. (not including cc or car payments)
Message edited 8/24/2009 1:51:45 PM.
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| Posted 8/24/09 1:50 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: Reasonable mortgage payment for salary
Posted by LSP2005
To me, no, it is to much of a monthly mortgage. I would think 2500 a month is more reasonable if you also have child care costs. I mean, if you don't save for retirement or any fun things, yes, then perhaps someone could technically afford it, but it would be way to close for comfort for me personally. I would also take into consideration if they also have student loans or cc debit too.
Agreed, FT daycare for 2 can be up to 2500 a month alone. I think you will be more comfortable LONG TERM with a smaller mortgage (more like 2500).
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| Posted 8/24/09 2:47 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Reasonable mortgage payment for salary
I can see it being tight - but just think of the extra money when the kids go to school!!! If you can be conservative the first few years, it might all pay off in the end.
Plus - my sister only pays 1700 for 2 kids (her school subsidizes it) - so there are more affordable options out there.
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| Posted 8/24/09 5:01 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Reasonable mortgage payment for salary
Any budget that leaves you with nothing left at the end of the month is cutting it too close. Unless you have an unbelievable amount of savings in bank for emergencies. That would totally change the picture.
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| Posted 8/24/09 5:51 PM |
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