My husband and I are looking at buying a house for $540,000 with a 5.5% interest rate. We’re putting 20% down, so our monthly payment will be about $3,400 for mortgage, taxes and insurance. We’ve been paying $3400 a month in rent for the past year (HCOL area) in addition to paying for a wedding and traveling, without going in the red. But obviously home ownership costs will be higher than renting.
Our combined gross income is $136,000, historically increasing annually 2-3% per year with potential for greater growth in the next couple years. I also have quite a bit in savings that we can fall back on if absolutely necessary. Just not wanting to put this towards the down payment to keep it liquid for other investments.
He currently pays $250/month in student loan debt, but otherwise we have no debt. We don’t currently have kids, but plan to start trying soon. So that will be a major future expense.
Are we idiots? Will we be in way over our heads with these numbers? Any insight would be helpful!