Assessing a $275k Mortgage on a $120k Salary with $650k Net Worth

I’m considering buying a $550,000 house, planning a $275,000 down payment, and contemplating between a 15-year and a 30-year mortgage. I prefer the 15-year option to build equity quickly. Is this a sound financial decision? Our household has a single income now, but my wife may work again when our kids are older. My job is stable.

@Ev
I’m planning to borrow $275,000. The mortgage payment estimates are about $2,400 for a 30-year term. I also have concerns about potential high maintenance costs due to the house’s value.

If your mortgage is really $275k, that seems manageable on a $120k salary. Initially, your title suggested a higher mortgage, which would be risky.

What are the monthly payments for both the 15-year and 30-year mortgage options? It’s important to factor in maintenance costs beyond just the mortgage payments.

Mai said:
What are the monthly payments for both the 15-year and 30-year mortgage options? It’s important to factor in maintenance costs beyond just the mortgage payments.

For a 30-year mortgage, payments are about $2,400, and for a 15-year, it’s about $3,000, not including maintenance costs.

Consider your net monthly income versus the estimated mortgage payment. It’s crucial to ensure you can comfortably cover the $2,400 mortgage plus other expenses.

Adi said:
Consider your net monthly income versus the estimated mortgage payment. It’s crucial to ensure you can comfortably cover the $2,400 mortgage plus other expenses.

My net monthly income is around $7,900. After all calculations, I feel we can comfortably manage the mortgage without compromising our financial security.

A 30-year mortgage might be more flexible and less risky. You can always make extra payments. Also, consider how the house’s location might appreciate, potentially making the investment even more worthwhile.