I currently owe $180K on a house worth around $300K, with a 3.7% interest rate. My homeowners insurance recently increased to $7,300/year, bringing my mortgage payment to nearly $1,900/month. I love my house but dislike the location—far from friends, my girlfriend, and activities—which is negatively affecting my mental health.
I make $145K/year and allocate:
5% to retirement,
10% to savings,
5% to food/groceries.
My main account receives around $6,000/month (after deductions), and my monthly expenses include:
$350 car payment,
$120 car insurance,
$100 student loans,
$80 cell phone.
I’ve considered moving closer to a city, but $400K homes in those areas come with $3,000+ mortgages, which seems excessive. Using proceeds from selling my current house, I could put down a substantial down payment, but I’m unsure how much mortgage I can realistically afford while maintaining financial stability and improving my quality of life. How do I balance these priorities?
A mortgage around $2,000/month is reasonable for your income. Use the proceeds from selling your current house and additional savings to increase your down payment, reducing your monthly mortgage burden.
If you haven’t already, shop around for insurance. Even with your unique property (a geodesic dome), comparing policies can sometimes lead to savings. Consider switching to a cash value policy or exploring other insurers to lower costs.
@Emmy
Thanks! I’ve shopped around and have limited options due to the dome structure. A cash value policy saved some, but I’ll likely sell and move to a more traditional home.
If moving, consider areas with lower property taxes and insurance rates. This can offset higher mortgage payments, improving overall affordability while keeping proximity to friends and activities in mind.