Hey all,
Hoping to get some outside perspective on a potential home purchase. We're FTHB in our mid-30s, Colorado (~V/HCOL), we will not have kids, but do have 3 dogs.
I work in government so I have near permanent job security in my position. She works in hospitality which is less secure, obviously. We both contribute pre-tax to retirement and both have employer match as well.
We have one auto loan that has less than 2 years left on it for $545/month and then insurance for both our cars is $243/month. We paid off most our credit card debit before seeking pre-approval, but have about $3000 left of CC debt remaining. I have student loans and am 2 years away from qualifying for PSLF so I am paying the least amount of my loans that I can with that in mind.
We live fairly frugally, so most of our leftover money each month is for dates, concert tickets, hobbies, or saving for 1 vacation a year.
We've found a 1950s house that's been on the market for 30+ days in a neighborhood we love that has been completely gutted and updated tastefully (no millennial grey!). It comes with brand new appliances (except washer/dryer), refinished hardwood floors, new windows, countertops, cabinets, bathrooms, drywall, carpet downstairs, roof, concrete patio, new lawn sprinklers, the works.
The house is 626k for 3 beds, 2baths, at 1600sqft with a fenced backyard and finished basement in a desirable neighborhood. The seller is giving us $18,600 in concessions to buy our rate down as well (considering either fixed or a 2/1 buydown). We're putting 5% down. Thankfully, Colorado has extremely low property taxes, it would be around $1,800-1900/year.
The only thing that's giving us pause is with the mortgage rates, our payment would be somewhere between 40-44% of our net pay, 25-28% of our gross, depending on if we go for a fixed rate or 2/1 buydown.
Monthly budget breakdown below (assuming fixed rate buydown, 2/1 buydown would lower mortgage about 3-400/month). Just hoping to get some thoughts or a different perspective. TYIA!
Item | Amount |
---|---|
Pre-tax | $14,980 |
After tax | $9,514 |
Mortgage | $4,219 |
Utilities | $550 |
Groceries | $600 |
Stud. Loans | $202 |
Credit Cards | $250 |
Auto Loan + Ins. | $793 |
Savings | $1,000 |
**Remaining | $1,900 |
Savings | 75,000 |
original posted by TruthSwans_ to r/personalfinance on Wed, 06 Mar 2024 01:26:57 GMT.