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killaho69 t1_j2cofy3 wrote

Reply to comment by mahsitaax3 in Can I afford $2800 rent based on my financial situation by irishgirl249

I'm not OP, but what do you think about a 2k mortgage making 95k+ 5k bonus and net monthly being around 4600?

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TurdFurgeson18 t1_j2ctmhh wrote

Mortgage and rent are completely different ballgames as long as you arent planning on selling your house every 5 years. You are storing away the value of that payment in you net worth, if you can afford to live on the rest its not a poor move. Rent is flushed down the toilet every month, youll never see the value of that cash again once that month ends, which is why paying rent at any elevated rate, no matter how much income you have, is a poor idea.

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Contralogic t1_j2e0xjl wrote

Be careful turdferg with this math..

Of the mortgage, your equity increases just eith principal paydown...taxes, insurance, maintenance (commonly estimated at 1% annually of home value)... Having a mortgage can make sense for a lot of good reasons...but a well priced rental can sometimes be better for the situation.

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BernerDad713 t1_j2cq6l9 wrote

Not too dissimilar from my situation and I can still save alright for retirement at the same time. I also had to deal with a few issues in the first 6 months of owning. Have an emergency fund in place!

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Cheaper2000 t1_j2cppq3 wrote

2k just mortgage or PITI? Either way it’s high but if it’s just mortgage it’s way too high.

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killaho69 t1_j2cwyd4 wrote

I dunno what piti is but that’s inclusive of tax, insurance, etc.

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mahsitaax3 t1_j2cz8i2 wrote

Definitely doable especially if you're single making that much. Just make sure to budget your other recocurring monthly costs.I live in Southern California so a 2k mortgage sounds like a dream.

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killaho69 t1_j2czs5z wrote

I'm submitting a bid on another house that's in a small town that would be $213k or $1500/mo inclusive of tax, etc. But the bank that owns it is trying to fish out the max they can and spark bidding wars. I know for a fact they have at least one offer over list (mine, 3k over) but they pushed back their deadline to get offers in. Even though it's less per month, I'm still not gonna overpay for it, so I'm not raising my bid.

So if that one falls thru, my next pick is a bigger, brand new construction, with builder incentives like 10k towards closing and point buy, 4k lender credit, etc.

I live in a low COL state. $4600 is after me contributing 8% to 401k (for a combined 15% between my employer and I). I feel like $2000 + $200ish for power + $80 for internet + $80 for water/sewer/trash for a combined $2360 with $2300 left over leaves me in a decent spot, considering 2.5 years ago I didn't even bring home that much.

I do have a teenage daughter who will turn 16 next year, she'll dent the budget a little, but I feel like we could make due and hopefully in 2-3 years rates will be down again. My truck is paid off and I work from home, so she could drive mine some, or I could spend $10,000 or so on her a good used sedan. We'll just have to eat in and stuff more than we do now while we're at my parents.

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