Will I Make Myself House Poor?

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$300K for a brand new home is quite reasonable, especially if you are coming from California. I would try to get a rate lock before rates go up further and continue on with the purchase. You always have the option to make extra payments toward principal to pay it off faster as your income goes up. I’m guessing you will have to pay at least that much per month to rent an apartment if you don’t buy there.


>My only debt is my car lease at $450 per month How much longer to pay this off? >My monthly payment went from $1,800 to $2,200. Total mortgage payment with PITI? >I used Smart Asset to calculate my new take home pay and it’s going up to $4700 a month 4700 – 2200 – 450 = 2150 left after debt I believe. Can you include your monthly budget on here? It could be close or it could be ok depending on your spending habits.


Off topic question, how can someone make 100k a year and only take $4,300 per month? It’s not like the 401k contribution is super big.


If you can get a lock on that rate, also if you can put over 20% down (61k) so you don’t get taken on the mortgage insurance. You can always refinance but the fed is going to have to raise the rate soon here so 5.75 is prob going to be low. You remove that mortgage insurance cost and you are sitting pretty, just try to lock in that rate then refinance in ten years or so if need be. I’m a moron and from the internet, so grain of salt. But that is what I would tell my child if they asked me. So good luck fam.


Short answer is buy. If rent is comparable, home will create equity for you through principal payment and per historical statistics should also appreciate. You may need to live a little tighter but some of your food spending seems high like you said. Another thing to consider is how mature in your career are you? I’d assume even if not going for a big promo you will see raises each year (maybe small) to slowly give you more savings power. Do it!