I have done all of the “how much house can I afford” and “mortgage affordability” calculators but they go off of net income, I don’t like that. Wife and I combine made $120k last year but what I’m more interested in is that we bring home $7,200 a month after taxes, health insurance, and retirement.
We are selling our current house and building a new house. Current place is $1,400 a month at 2.75% interest so it already chaps my ass to give up an incredible rate for the high rates of today. Equity in current house will pay for down payment and closing costs of new build.
New home is $460,000 and builder is giving 10k in points buy down. 20% down plus closing costs is $112,000. As of right now, financing $368,000 on a 30 year conventional, our payment will be $2,850 a month at 6.25% (understanding rates “should” go down before we sign)
I’m using the above as worst case scenario. Like I said, we bring home $7,200 a month, will have $30k in savings and have zero debt other than the mortgage. Both paid off cars, no student loans, no credit card bills, no kids (just dogs). Obviously, I am doubling my mortgage payment but I am VERY comfortable right now. Will I be comfortable at $2,850 a month? Am I setting my wife and I up for failure? I owe a $30k non refundable deposit in a week and I think I’m getting cold feet.
Please talk me off the ledge!
original posted by ravens9322 to r/personalfinance on Wed, 28 Feb 2024 01:39:01 GMT.