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Reasonable mortgage payment for salary
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lullabella
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Re: Reasonable mortgage payment for salary
Posted by Nik211
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
i think everyone is going to disagree on what is better....some people rather be "house poor" and have a house to show for it and other people rather not be "house poor" and live more comfortably and continue renting...
my DH and i have been wanting to buy a house for a few years but we didn't b/c the timing and the money was never right....i do agree that renting s-u-c-k-s, we've been renting for 4 years and lived in 2 apartments already.....but we are the type of people who know that we don't want to be "house poor"....as a matter of fact, we could buy and continue to live in NY if we wanted to - with what we make combined we could def afford a house here - and i'm sure we could figure out how to make it work - but we don't want to have to "figure it out" and have to worry about both of us always working, especially when we have kids....we're more conservative, we rather have money in the bank and money left over every month to spend....
we waited until the time was right.....we really wanted a house before our wedding but it ended up not being in the cards for us - but i'm glad we waited...we found a house we love, hopefully we close next week and our payments should be really affordable at $1,250 a month  ....
to get there we had to sacrifice time (meaning we had to wait until we saved enough money) and we had to sacrifice the location - which not everyone wants to do or can do.....but for me leaving NY isn't that much of a sacrifice - we are leaving some family behind but we hope to start our own soon - and the warm weather and beaches shouldn't be too hard to get used to 
with that said, i would say your payment is way too expensive....but that is for ME and my comfort level....i wouldn't be comfortable with that kind of payment - combined salaries last year for us was 140k - if we bought up here i wouldnt want to pay any more than $2,500 on both of our salaries even though people we know who make the same or less than us have higher mortgages than that....we are the type that likes to have money to put away every month and money to go out - and with a house things are always going to come up, and bills will be higher than when you were renting, add in kids and there are a ton of other expenses you'll have over their lifetime....
the point is, everyone is different, i guess you have to do what you guys feel comfortable doing.....if it's going to be living check to check i wouldnt advise it - but if you guys know you can make it work and you are comfortable with it than i guess go for it....
Very well said!! I have friends who make a fraction of what we make and have better cars, go on more vacations, etc... They have debt and we dont, to each is own.
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Posted 8/27/09 1:47 PM  |
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annoyedTTCer
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Re: Reasonable mortgage payment for salary
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
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| Posted 8/27/09 2:22 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Reasonable mortgage payment for salary
Posted by annoyedTTCer
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
7
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not 
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| Posted 8/27/09 2:27 PM |
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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 headoverheels
Posted by annoyedTTCer
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
7
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not
I wish you lots of luck in your new home. Without giving us the additional information here we could not possibly give you complete advice.
Guaranteed annual raises, low day care costs and no chance of ever losing your jobs does color the picture differently.
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| Posted 8/27/09 4:41 PM |
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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
Posted by Blu-ize
Posted by headoverheels
Posted by annoyedTTCer
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
7
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not
I wish you lots of luck in your new home. Without giving us the additional information here we could not possibly give you complete advice.
Guaranteed annual raises, low day care costs and no chance of ever losing your jobs does color the picture differently.
I think there is some confusion here - LB never asked for advice on whether or not she could afford her new home on her $150K salary - another poster did. LB was just chiming in that she thinks it can be done and will be doing it.
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| Posted 8/27/09 4:54 PM |
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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 SweetCaroline
Posted by Blu-ize
Posted by headoverheels
Posted by annoyedTTCer
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
7
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not
I wish you lots of luck in your new home. Without giving us the additional information here we could not possibly give you complete advice.
Guaranteed annual raises, low day care costs and no chance of ever losing your jobs does color the picture differently.
I think there is some confusion here - LB never asked for advice on whether or not she could afford her new home on her $150K salary - another poster did. LB was just chiming in that she thinks it can be done and will be doing it.
You are right, I didn't see who posted that. My apologies! Your situation sounds different from the OP. 
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| Posted 8/27/09 4:56 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Reasonable mortgage payment for salary
Posted by Blu-ize
Posted by SweetCaroline
Posted by Blu-ize
Posted by headoverheels
Posted by annoyedTTCer
Posted by headoverheels
Posted by LSP2005
I have to say that I find it extremely telling that all of the girls who already own homes and have children or pay child support are all saying that a mortgage at that rate is not feasible and those that are about to purchase or are toying with the idea think it is feasible.
7
I personally would never want to be house poor, having seen both friends and family go through it and really struggle, it is so sad and hard for them. Just some food for thought.
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
plus with the market the way it is now, it would take DH and i YEARS to buy a house if we waited until the market improved. for us, it's totally worth the risk.
It would be a shame though if you lost your home or ruined your credit because you overextended yourself.
And really stress over finances is a leading cause of divorce.
Where are you looking? Can you find an area that lets you stay in the $2,500 range?
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not
I wish you lots of luck in your new home. Without giving us the additional information here we could not possibly give you complete advice.
Guaranteed annual raises, low day care costs and no chance of ever losing your jobs does color the picture differently.
I think there is some confusion here - LB never asked for advice on whether or not she could afford her new home on her $150K salary - another poster did. LB was just chiming in that she thinks it can be done and will be doing it.
You are right, I didn't see who posted that. My apologies! Your situation sounds different from the OP.
thanks to you both - you're right - i should have pointed out that our situation is a bit different.
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| Posted 8/27/09 7:46 PM |
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LAMGAJ28
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Member since 10/05 6039 total posts
Name:
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Re: Reasonable mortgage payment for salary
Posted by headoverheels
i appreciate the concern but we're closing on Monday.
DH and i are very confident that we will be okay. our daycare costs are low, we each get annual guaranteed raises, and neither of us is in any danger of losing our job.
i agree with whoever said "to each his own" - i personally find it MORE telling that there are those who say that it's "impossible" when obviously, it's not
I also didn't realize the different posters and their situations.......
I guess it really depends on the kind of lifestyle that each person is used to and wants to live(how much you get to save each month, how many times you go out to eat to a restaurant every week, social life, expenses, vacations, fixing house etc) and the level of comfort as others mentioned it.
ETA>>Forgot to mention the emergency fund..some people feel comfortable with having just 1yr of their mortgage while others prefers to have saved 2-3yrs saved for their mortgage just in case of any emergency should come up or to have cash readily available.
Out of curiosity...you said your daycare costs are low. Is it because you have a family member or a friend taking care of your children?
Many corporations that give guaranteed raises didn't do so this year due to the economy the way it is and how it impacts the business, so many people didn't get bonuses. So sometimes what may see as guaranteed turns out not to be.
And then with the danger of losing the job...it's not so much of that....but rather what happens if someone is unable to work and that income is not coming in....will the bills get paid timely and all the expenses will be covered?
Again...such a personal decision....and what may work for one family may not work for another depending on their lifestyle and their comfort level.
And best of luck in your new home !!
Message edited 8/29/2009 11:45:02 PM.
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| Posted 8/29/09 11:06 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Reasonable mortgage payment for salary
Posted by MrsFlatbread
Posted by ave1024
Posted by amber1
Having a debate with a family member. In your opinion is a $3000-3500 mortgage (incl. taxes) a reasonable mortgage for a family bringing in $150,000 a year? Assume daycare is needed for 2 kids.
No that's too much mortgage IMO with two kids in daycare.
2 kids in daycare will cost almost $2000 a month plus $3500 a month in mortgage plus other expenses...I definitly do not think $150,000 a year would cut it at all honestly.
Agreed. $5500 in monthly debt puts you at 44% debt to income ratio. And that is assuming no other debt (including by not limited to car loans, student loans, or CC debt).
Add a $500 a month car payment and you are at 48% total DTI.
Most financial experts recommend the 28/36 rule when it comes to determining affordability. 28% towards just housing debt, and 36% TOTAL debt.
The $3500 a month mortgage payment is right at the 28% mark. But the total debt figure is over.
http://www.investopedia.com/articles/07/debt_to_income.asp?viewed=1
Keep in mind that an increasing number of people are in the 41-49% range, a zone where financial trouble is imminent. Nearly all experts agree that a debt-to-income ratio above 50% is living dangerously.
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| Posted 8/29/09 11:21 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Reasonable mortgage payment for salary
Posted by headoverheels
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
You aren't throwing money when renting. You are paying for a place to live.
A good read about the myth that is "having no equity to show for it".
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| Posted 8/29/09 11:34 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Reasonable mortgage payment for salary
Posted by ave1024
Posted by headoverheels
i can understand this, but i can tell you i'd rather spend every last dollar i have on a house, mortgage, and everything that comes along with it than continue to rent, move from apartment to apartment as rent continues to increase, and have absolutely no equity to show for it.
You aren't throwing money when renting. You are paying for a place to live.
A good read about the myth that is "having no equity to show for it".
i dont entirely agree with this. we rented for a year before we closed on and moved into our house and I TOTALLY regret that year. We spent 15,000 in rent in one year (not to mention hundreds - thousands on decorating etc) that could have been saved had we continued to live rent free with parents. Now, keep in mind we were younger than many couples, not yet married and without kids. Our situation was different than many but in our case, I do feel as though we threw money away. We wanted to get out on our own and I am happy that we did, it was baby steps towards a mortgage BUT looking back, 15,000+ would have gone a long way towards decorating or paying down principal on our HOUSE or would have been great in the bank as savings.
If you can afford buying (we look at it as a savings account, we WILL get the money back one day) then why rent? You will never see that money again. JMHO
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| Posted 8/30/09 11:11 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Reasonable mortgage payment for salary
There are also many people who bought in the last 5 years that have no equity...just b/c you buy something doesn't mean you are automatically going to see a large return before you have or need to sell
I am personally glad I didn't buy in 2005/06 when everyone told me renting was horrible....if there is 1 thing I have learned it's you can't perdict the future
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| Posted 8/30/09 11:31 AM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Reasonable mortgage payment for salary
Posted by annoyedTTCer
Posted by mrskparetta
Posted by Blu-ize
Posted by mrskparetta
we come in slightly over that combined (about 170) and carry a 3100 mortgage, still managing to save. i think it is doable.
Do you have two kids in day care full time?
no but if we didnt spend as we do (my shopping habbits, dinners out, vacations, donations and added to our savings, we could manage it.
Do you both max out your 401k? Have commutting costs?
We are over $150k with a payment of $3,800 and after FSA, 401k, commuting costs, car payments, etc there isn't a ton for the kid and rainy day funds
well, 3800 IS considerably higher than 3100. that being said, yes we do have commuting costs and both pay into 401k +. We are very comfortable but I wouldnt want to stretch it any further.
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| Posted 8/30/09 11:32 AM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Reasonable mortgage payment for salary
Posted by Beth
There are also many people who bought in the last 5 years that have no equity...just b/c you buy something doesn't mean you are automatically going to see a large return before you have or need to sell
I am personally glad I didn't buy in 2005/06 when everyone told me renting was horrible....if there is 1 thing I have learned it's you can't perdict the future
great point! we bough AT THE WORST time to buy. We bought new construction, locked in in November 2007   and closed in June 2008. Now, we havent made anything per say but if we were to sell now, we are fortunate that would could get what we paid. I think that this is only because it is new construction. Had we purchased an older home, we surely could have lost (at this point, it will rebound).
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| Posted 8/30/09 11:34 AM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
Name:
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Re: Reasonable mortgage payment for salary
Ummmm in a word....NO!!!!
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| Posted 8/30/09 11:44 PM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
Name:
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Re: Reasonable mortgage payment for salary
Posted by amber1
Just to clarify- I meant $3000-3500 inclusive of taxes so that your monthly payment of mortgage and taxes is b/w 3000-3500, know what I mean? I guess you need to add another 100 or so a month on for homeowners insurance. Does this change anyone's answer?
Still no.
DH and I bring home more than that and our mortgage is half that and we have no debt but a car payment and we would not ever consider a $3500 a month mortgage.
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| Posted 8/30/09 11:47 PM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: Reasonable mortgage payment for salary
Posted by Beth
There are also many people who bought in the last 5 years that have no equity...just b/c you buy something doesn't mean you are automatically going to see a large return before you have or need to sell
I am personally glad I didn't buy in 2005/06 when everyone told me renting was horrible....if there is 1 thing I have learned it's you can't perdict the future
You are right - just b/c you buy doesn't mean you are guaranteed a huge profit when you sell - look at what is happening to all the people who bought a few years ago when the market was inflated....
Because of the circumstances of the market my DH and I are trying to look at buying a house as buying a "home" as opposed to buying an "investment" - we are buying a place where we can live, start a family, a place we can make our own....we aren't looking to flip it, or looking to make money off of it in the next 5 years....because the truth is, in Florida, things are probably going to get worse in the next year, maybe even two years...but at the same time we can't wait forever - so we are taking the chance and *hopefully* we'll be in the home long enough to see it appreciate in value....but like beth said, you cant predict the future - and we aren't going in expecting this house to turn into a huge profit one day - of course we hope it's a good investment but at the same time we have to be realistic and with the way things are right now its unrealistic to expect things to get better in near future....hopefully im proven wrong though 
Message edited 8/31/2009 9:35:21 AM.
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| Posted 8/31/09 9:34 AM |
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bpmom
Feeling Blessed
Member since 6/07 2963 total posts
Name:
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Re: Reasonable mortgage payment for salary
Absolutely not, IMO.
DH and I make more than that, have a mortgage of less than $2k so in theory and on paper, we look like we're fine.
In reality, please plan for the unexpected, which we estimate are 1-3% of our home's value PER YEAR. For example, we had a termite inspection but wound up with termites and termite damage (big $$). Stuff breaks, plus you have kids and boy are they expensive. We will have two in daycare next year and that could cost us $2500 a month (well above our mortgage!)
We live well below our means, own our cars outright, and have no credit card debt. Plus our taxes are super low.
I honestly don't know how other people do it. I would not be comfortable with a higher mortgage or taxes at that salary.
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| Posted 8/31/09 11:12 AM |
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tourist
Member since 5/05 10425 total posts
Name:
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Re: Reasonable mortgage payment for salary
Percentage wise, I pay about the same towards housing costs (I have a co-op so there is maintainance which includes taxes) & we are fine, but we don't have many other expenses--no other debt & no kids.
My concern would be the day care costs.
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| Posted 8/31/09 2:27 PM |
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