I'm considering moving which would significantly increase my mortgage + insurance + taxes from $1400 to $4400. My HHI is $230k (base salary only) so that would increase my total housing cost from ~10% of gross income to ~28%. We'd put 20% down and have a 9 month emergency fund left over. We have no other debt.
I know the general rules of thumb suggest this is still okay, but I'm uncomfortable with that increase. Our budget suggests we'd still be able to get close to maxing 401ks with a higher mortgage but discretionary spending would be tight.
If we don't move now, we'll still likely move in 1-2 years since we're planning to start a family, but in the meantime we could save $36k a year staying put. I'd expect childcare costs to be another ~$1500 a month down the road.
It seems feasible to move now, but money would certainly be tighter. What am I missing in making this decision? Is total housing costs 28% of gross income (~40% net) reasonable/uncomfortable/dumb?
original posted by reedx347 to r/personalfinance on Fri, 08 Mar 2024 15:15:49 GMT.