We (29F/32M) live in a HCOL area, smaller homes in need of work start around 550k but the ones we like and would be better for us to have some room to grow both being (mostly) remote workers run closer to 700k.
I have 200k in a HYSA and make 138k/yr with an almost guaranteed 20-25k bonus eoy. My partner (not married) would split the mortgage payment, it's not relevant but he makes 130k/yr. My only debt is 10k remaining on my car, 0% APR.
I put just enough in my 401k to get my match (close to ~100k in there rn) and max out my HSA each year. I haven't been prioritizing my 401k as owning a home sooner is my priority.
I really want to own a home, I'm so tired of renting. Looking at how much interest we'll pay on a mortgage of that size is frankly really scary, a 700k home seems impossibly far away...I have an 800+ credit score and the fact that I can still only get a rate in the 7s hurts. On a 30 year mortgage schedule paying the minimum would be paying the cost of the house twice over in 30 years...
Does it make sense to buy sooner and throw every extra penny at the mortgage, or wait a year or two and hope my savings outpace the appreciation of property?
original posted by underglobe to r/personalfinance on Sat, 02 Mar 2024 01:03:25 GMT.