Below is a list of my household monthly debts:
Kia Soul: $210
We've paid off our student loan debt in its entirety, and we have no credit card debt.
Our monthly net pay is around $4300.
A Hunch: With household income of about $150K, you can purchase around $450,000.
If the $2300 is solely mortgage, that means you are looking at closer to $500K which you can probably get but you are going to be house-poor.
However, I can't figure out how you have $12500 gross per month that ends up $4300 net…something like this:
Taxes = $5000
Insurance = $1000 (can you be on different employer insurance to save costs)
401K = of over $2200 a month?? Unless the company match is fantastic, why so high?
Can you afford it:
a) it really depends on how you get from $12500 gross to $4300
b) is the $2300 solely mortgage or also insurance, property taxes, etc
b) what is the lifestyle you want to have (housepoor or much less stressful financial situation).
that's about $7,500 extra a month you'll have, so yeah unless you get sick and stop working…
yeah you can afford the mortgage even after taxes are taken out… i suggest adding all your take home pay from your income on a yearly projected basis to see what disposable income you have for a year without taking into account food and clothing expenses… then divide the total by 12 and you'll have the average disposable income for each month… then add the monthly debts you listed and see what's left over… what's left over shall be the amount of disposable income you can spend on a mortgage payment… were the disposable income in the month to be higher than the mortgage payment, which it shall be, you can afford the mortgage payment each month… with such a low mortgage payment, it would be wise to double up on the payments so you'll pay lower interest during the life of the loan as the loan shall be paid off sooner…
you don't eat, you don't have electricity or gas, you don't have to buy clothes, you don't have health insurance, how about life insurance, or car insurance, are you putting away anything for retirement
with that kind of income it would appear you could make that mortgage
should be plenty of income for it
Yes you can afford the mortgage even after taxes are taken out. I suggest adding all your take home pay from your income on a yearly projected basis to see what disposable income you have for a year without taking into account food and clothing expenses. Then divide the total by 12 and you'll have the average disposable income for each month. Then add the monthly debts you listed and see what's left over. What's left over will be the amount of disposable income you can spend on a mortgage payment. Were the disposable income in the month to be higher than the mortgage payment, which it will be, you can afford the mortgage payment each month. With such a low mortgage payment, it would be wise to double up on the payments so you'll pay lower interest during the life of the loan as the loan will be paid off sooner.
Yes. Less than 20% of income. Consider yearly taxes and home improvement needs. Also type of loan, VA, FHA, Conventional. AND how much are you putting down?…stick with fixed rate
Have you considered property taxes (in addition to your mortgage)? They can be expensive depending on where you live. What about water, electric, gas and other monthly expenses such as groceries? Car insurance? Home owners insurance? There are also upkeep costs with a house. When will the roof need replacing? House updates? Planned renovations? And so forth.
You need to work out a monthly budget and decide if you can live with it. That's a decision you need to make.
Of course, first you have to get approved for the mortgage which will depend on your down payment, work history and credit score.
Edit to the above, according to your additional information:
Take home $4300
Less a $2300 mortgage
That leaves $2000. Less your other additional expenses listed of approximately $1300. That leaves $700 and you still haven't paid property taxes, car or home insurance or your utilities (water, gas, electricity) or any money put aside for emergencies and home upkeep/repairs.
Unless you drastically change your lifestyle, you're not going to be able to make this work.
We make about half that and have a $700/ month mortgage. I would find $2,300 difficult to pay even with $150,000.
Does the $2300 include the taxes and insurance? How about utilities? What about home repairs?
You also have to consider what would happen if one of you lost your job, became incapacitated, or died.