Buying first home at 39% of monthly net (10.9k). Are we over extending? Especially if we might want a kid in the future?
My partner and I are trying to sanity check whether we’re stretching too much on a house in Colorado. Our combined gross income is about $16.3k/month, and our take home is around $10.9k/month. We currently have $154k in savings. For the home purchase, we’d be putting $60k down, getting a $15k gift from parents, and closing costs are covered. That would leave us with about $94.6k in savings after buying, which is close to our goal of keeping $100k as an emergency fund / future car fund. We both have some old paid off cars that might not make it much longer. That 100k emergency fund would cover the cars, 10k for house repairs, and around 6 months if we lose our jobs based on 6k monthly expenses detailed below.
The total monthly housing cost (mortgage, PMI, property tax, homeowners insurance, HOA) would be $4,295. Outside of that, our monthly expenses are roughly: $700 for food, $200 auto insurance, $300 utilities (estimate will get better idea soon), $100 gym, $400 misc, and about $250/month for a remaining $20k student loan. We’d also like to budget around $1,200/month for travel, dining, and general lifestyle spending. Assuming that would be enough for a vaction or two a year
All in, that puts us at about $7,400/month in total spending, leaving roughly $3,400/month leftover. We don’t have kids yet but would like one in the future, and from what we’ve seen, that could add 1,500–2,500/month. That would bring our leftover down to somewhere between $1k–$2k/month depending on the scenario. Seems pretty tight.
But this is truly a home we love and is big enough for a family.