I make more than you as a single earner and my mortgage is half that. I can’t imagine being house poor on your income—it’s not worth it.
Peyton said:
I make more than you as a single earner and my mortgage is half that. I can’t imagine being house poor on your income—it’s not worth it.
Congrats on timing the market. Not everyone has that privilege. People need to live somewhere.
@Del
OP already has a house that’s almost paid off. Why stretch the budget for something unnecessary?
This isn’t comfortable. Did you factor in higher taxes, insurance, and other costs of a new build? I’m surprised this loan was even approved.
Don’t push this if your wife isn’t on board. It’s a recipe for resentment and stress.
You’re fine. People here rely too much on blanket rules that don’t apply to high earners.
Del said:
You’re fine. People here rely too much on blanket rules that don’t apply to high earners.
True. 50% of $10K is very different from 50% of $2K.
Don’t do it. New builds often come with surprise costs.
Everyone thinks you’re crazy for a reason. Construction costs go over budget, taxes rise, and ARMs are unpredictable. You’ll regret this.
Are you maxing out your retirement accounts? A $10K take-home on $220K gross seems a bit low.
It’s not as crazy as it sounds if your non-mortgage spending is low. Can you comfortably live on $5K a month for everything else?
It’s doable, but is it worth it? Why not pay off your current house and enjoy the financial freedom?
This isn’t comfortably doable. Look for something around $400K instead.