- Joined
- Jun 17, 2004
- Messages
- 66
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My wife and I are having a terrible itch to buy a home. Brief summary of our financial/family setup...I'm 3 years out of training in emergency medicine and she is in her last year of a toxicology fellowship after going EM/IM combined. She will more likely be in IM than EM when finishing. We have a not quite 2 year old. I make a conservative 400K a year as an independent contractor and she makes about 65K a year as an employee. Combined that gives us about 38K a month pre-tax from that I max my SEP IRA and my wife's 401k before below expenses. Currently we spend about 14-16K a month on expenses such as
rent 2600
nanny 3000
student loans 4000
disability/life 700
utilities 700
Health 500
Food 1000
There are a few categories missing and we probably buy too much junk on amazon and seem to have a "one time" expense about every month for a pretty consistent 14-16k. (that is everything except our retirement amounts to 14-16K per month on average)
Debts
Our current student debt is $87K @ 3.5% for me. $160k @5.5% for my wife. We've refinanced my loans with DRB for a five year plan about 1 year ago and will likely do the same or similar for her loans when we figure out this house thing.
12k left on a Hyundai Genesis at 1.8% (bought it used including taxes for 19K, I have never felt bad about this purchase. I drive 76 miles a day to my workplace.)
Assets
Retirement plans - about 160K all combined
Bank accounts - we have about 30K for an emergency fund and another 55k that can be used in any fashion (house down payment).
So down to the home buying part, sorry for the long setup (maybe not long enough)
Our lease ends in June 2016 so we are definitely in the planning stages but would consider moving now if the "perfect" house came on the market.
We are trying to decide on a reasonable price range. The area we are looking at will likely have a minimum of 300K for a house we would consider but we could probably get everything we want and more for about 500K.
The trouble with the immediate situation is 55K for a down payment on 300K is pretty close to 20% and could easily be 20% in the next 2 months. 55K for a 500K home is going to land us in PMI land or a doctor's loan and this is where the itch to buy burns a little. I don't expect to be able to save more than about 6K a month extra while we are preparing to buy. This will give us about 90k by mid March-April for a down payment.
Part of the problem here is that we see houses go on the market, sell quickly and we develop a fear that our best option will be gone when we get around to buying.
Any advice? Are we looking to spend too much at $500k?
rent 2600
nanny 3000
student loans 4000
disability/life 700
utilities 700
Health 500
Food 1000
There are a few categories missing and we probably buy too much junk on amazon and seem to have a "one time" expense about every month for a pretty consistent 14-16k. (that is everything except our retirement amounts to 14-16K per month on average)
Debts
Our current student debt is $87K @ 3.5% for me. $160k @5.5% for my wife. We've refinanced my loans with DRB for a five year plan about 1 year ago and will likely do the same or similar for her loans when we figure out this house thing.
12k left on a Hyundai Genesis at 1.8% (bought it used including taxes for 19K, I have never felt bad about this purchase. I drive 76 miles a day to my workplace.)
Assets
Retirement plans - about 160K all combined
Bank accounts - we have about 30K for an emergency fund and another 55k that can be used in any fashion (house down payment).
So down to the home buying part, sorry for the long setup (maybe not long enough)
Our lease ends in June 2016 so we are definitely in the planning stages but would consider moving now if the "perfect" house came on the market.
We are trying to decide on a reasonable price range. The area we are looking at will likely have a minimum of 300K for a house we would consider but we could probably get everything we want and more for about 500K.
The trouble with the immediate situation is 55K for a down payment on 300K is pretty close to 20% and could easily be 20% in the next 2 months. 55K for a 500K home is going to land us in PMI land or a doctor's loan and this is where the itch to buy burns a little. I don't expect to be able to save more than about 6K a month extra while we are preparing to buy. This will give us about 90k by mid March-April for a down payment.
Part of the problem here is that we see houses go on the market, sell quickly and we develop a fear that our best option will be gone when we get around to buying.
Any advice? Are we looking to spend too much at $500k?
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