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Started By
Message
Opinion on buying a larger home within budget - sacrificing location.
Posted on 11/10/22 at 9:40 am
Posted on 11/10/22 at 9:40 am
My wife (no pics) and I are quickly outgrowing our current home. We bring home 5k a month and she will probably be getting a new job soon that will bring us to 6k a month take home. We are needing to upsize but our location is so good that anything bigger in this area will double our mortgage. Which I'm scared of. lol
Current home: $800/mo with 2.9% interest rate. This is 16% of our take home currently. We live pretty comfortable like this. We will be keeping it as a rental to add to our portfolio under our LLC when we move out.
The homes that we are interested in, in our location are about 250k. That will put our mortgage at about 25% of our new take home pay. We don't have car notes and live pretty frugal except my sons daycare is $675/mo. Just dont know if I can bring myself to have a $1600/mo mortgage when we are bringing home 6k/month. I guess because I am spoiled to such a cheap mortgage currently?
What would TMB do?
Current home: $800/mo with 2.9% interest rate. This is 16% of our take home currently. We live pretty comfortable like this. We will be keeping it as a rental to add to our portfolio under our LLC when we move out.
The homes that we are interested in, in our location are about 250k. That will put our mortgage at about 25% of our new take home pay. We don't have car notes and live pretty frugal except my sons daycare is $675/mo. Just dont know if I can bring myself to have a $1600/mo mortgage when we are bringing home 6k/month. I guess because I am spoiled to such a cheap mortgage currently?
What would TMB do?
9
Posted on 11/10/22 at 9:42 am to BayouBengal23
quote:
our location is so good
quote:
Current home: $800/mo with 2.9% interest rate.
Stay in the home you are in, is what I would do.
This post was edited on 11/10/22 at 9:44 am
Posted on 11/10/22 at 9:43 am to BayouBengal23
I would keep your butt where you are.
What is your plan if you get this new mortgage and then one of you gets laid off? Will be a painful lesson.
What is your plan if you get this new mortgage and then one of you gets laid off? Will be a painful lesson.
Posted on 11/10/22 at 9:47 am to WDE24
quote:
Stay in the home you are in, is what I would do.
Which is extremely tempting. The house is nice in a pretty nice older neighborhood. However its 1100 sq/ft and 2Bed 2Bath. With one kid and 2 larger dogs.
Its a great set up but we are outgrowing it...
Posted on 11/10/22 at 10:02 am to BayouBengal23
(no message)
This post was edited on 12/12/22 at 10:38 pm
Posted on 11/10/22 at 10:02 am to BayouBengal23
How old are the dogs?
I'd put the pets on a phase out plan. I have two kids under 4 and 2 dogs, and having the two kids plus the dog tasks is a lot, so they will not be replaced.
I'd put the pets on a phase out plan. I have two kids under 4 and 2 dogs, and having the two kids plus the dog tasks is a lot, so they will not be replaced.
Posted on 11/10/22 at 10:05 am to BayouBengal23
quote:
double our mortgage. Which I'm scared of
You answered your own question. I want to move cities and get a house with a pool but rates say keep your arse where you are for now
Posted on 11/10/22 at 10:40 am to BayouBengal23
I was in a very similar situation to you recently. We bought the new house. Now we have a rental property that pays for itself and the home we want.
Your take home pay to mortgage costs appear reasonable. I’d consider it.
However, we were able to lock an ARM at 3.25% over the summer, so knowing we were not getting destroyed on interest rate helped us make the decision. I doubt you are getting an ARM anywhere close to that now.
Your take home pay to mortgage costs appear reasonable. I’d consider it.
However, we were able to lock an ARM at 3.25% over the summer, so knowing we were not getting destroyed on interest rate helped us make the decision. I doubt you are getting an ARM anywhere close to that now.
This post was edited on 11/10/22 at 10:47 am
Posted on 11/10/22 at 10:46 am to BayouBengal23
Big beautiful homes in less popular areas are also much harder to sell and lose value more easily than starter homes in great areas
Posted on 11/10/22 at 10:53 am to BayouBengal23
The figures in the OP are kind of surprising to see in 2022 
Where the frick do you live
As others have pointed out, your current situation is pretty great.
However 250k home with 6k take home pay with your lifestyle would not be financially crippling at all. Even in the current rate environment.
So this really could go either way.
quote:
Current home: $800/mo
quote:
buying a larger home
quote:
are about 250k.
quote:
my sons daycare is $675/mo
Where the frick do you live
As others have pointed out, your current situation is pretty great.
However 250k home with 6k take home pay with your lifestyle would not be financially crippling at all. Even in the current rate environment.
So this really could go either way.
Posted on 11/10/22 at 10:59 am to BayouBengal23
You may not have car notes right now but you still have to pay for cars every now and then. Either that money comes out of your paycheck as cash to a savings account or it goes to a loan payment. Regardless, you have to budget for getting a new-to-you (new or used) car every now and then.
Be sure to look at increased utility costs, maintenance costs, repair costs, etc. associated with a larger home. It isn't just the mortgage payment that will go up. Everything associated with the house will go up.
Be sure to look at increased utility costs, maintenance costs, repair costs, etc. associated with a larger home. It isn't just the mortgage payment that will go up. Everything associated with the house will go up.
Posted on 11/10/22 at 11:01 am to notsince98
I’d suck it up for 6-8 months and let the interest rate hikes do their work on the housing market. And remember a recession is likely so one of your jobs may be going away.
Posted on 11/10/22 at 11:02 am to castorinho
quote:
Where the frick do you live
As others have pointed out, your current situation is pretty great.
However 250k home with 6k take home pay with your lifestyle would not be financially crippling at all. Even in the current rate environment.
So this really could go either way.
Acadiana area
Posted on 11/10/22 at 11:03 am to notsince98
Also, how will you have down payment if not selling the current home? What if you can’t find renters for periods of time and stuck with 2 mortgages?
Posted on 11/10/22 at 11:03 am to Chucktown_Badger
quote:
And remember a recession is likely so one of your jobs may be going away.
Lol wtf
Posted on 11/10/22 at 11:08 am to DaBeerz
quote:
Also, how will you have down payment if not selling the current home? What if you can’t find renters for periods of time and stuck with 2 mortgages?
Most homes in the area qualify for RD loan. 0% down
Posted on 11/10/22 at 11:14 am to BayouBengal23
quote:
Most homes in the area qualify for RD loan. 0% down
So just stretch that monthly budget even thinner is the answer?
Yeah.....I'm going to put my vote on the side of dont do it. Doesn't sound like you are prepared yet.
Posted on 11/10/22 at 11:22 am to Teddy Ruxpin
quote:
I'd put the pets on a phase out plan. I have two kids under 4 and 2 dogs, and having the two kids plus the dog tasks is a lot, so they will not be replaced.
Brother, I am with you. Although I will probably lose the battle, I will try not to have a dog for a while. Life is just too busy.
Posted on 11/10/22 at 11:44 am to BayouBengal23
quote:
Just dont know if I can bring myself to have a $1600/mo mortgage when we are bringing home 6k/month.
Reality is, under this situation you have to be prepared for a $2,400 a month mortgage because there is no guarantee you'll get a renter or how long they will stay.
Then add in the "what if" situations of making repairs on new home, rental, 2 houses of potential appliances going out. Insurance rates will be different with renter, etc.
I would suggest you plan to stay another 2-3 years and track interest rates. Plus your situation may be a little better by then and you will feel a little more comfortable making the move.
Posted on 11/10/22 at 2:12 pm to Weekend Warrior79
I don’t see any discussion of homeowners insurance in this thread. Did I miss something?
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