Hello Everyone,
A month ago I booked plan 2 in Helena (Eastwood). Base price was 726K and I intended to spend 24K on upgrades to make the final price to 750K. Initially I planned to put down 17% (10% from my savings and rest as a loan from 401K) and rest as mortgage loan. I knew my monthly budget (PMI, HOA, Mello Roos, 401K repayment and other monthly expenses) would be tight but with recent increase in mortgage rates I have a feeling that I committed very big mistake and would become real house poor if I commit to buy the new home. I already paid 25K in earnest deposit. I need your expert advice whether to hold on to my decision or let go of 25K and live in peace. My situation:
1. I have stable job in Irvine with annual gross of 150K.
2. I have a 1.5 year old daughter and my wife is currently at home but she is planning to start looking for a job early next year. With little hard work, she may be able to get a job in IT with annual gross at least 75-80K. I have to consider day care expenses if she starts working. Also we are planning for second child in future so my wife may take break from again in future.
3. We both have total of 270K in 401K (part of which I am planning to take as loan for down payment).
4. I have excellent credit score with no other debts except 325$ car lease.
5. Closing date is after April 15th next year.
I am now freaked out whether I would be able to pay all my bills (PMI, HOA, Mello Roos, 401K loan repayment, car lease, day care (if any), other monthly expenses) or have too much debt to deal with on monthly basis. Now I am wondering if I should let go of 25K earnest money or look for other options if I have to go with mortgage loan. Also please suggest if there is a way if I could get all or at least portion of my earnest amount.
I really appreciate all your expert suggestions on this.
Thanks,
Biku
A month ago I booked plan 2 in Helena (Eastwood). Base price was 726K and I intended to spend 24K on upgrades to make the final price to 750K. Initially I planned to put down 17% (10% from my savings and rest as a loan from 401K) and rest as mortgage loan. I knew my monthly budget (PMI, HOA, Mello Roos, 401K repayment and other monthly expenses) would be tight but with recent increase in mortgage rates I have a feeling that I committed very big mistake and would become real house poor if I commit to buy the new home. I already paid 25K in earnest deposit. I need your expert advice whether to hold on to my decision or let go of 25K and live in peace. My situation:
1. I have stable job in Irvine with annual gross of 150K.
2. I have a 1.5 year old daughter and my wife is currently at home but she is planning to start looking for a job early next year. With little hard work, she may be able to get a job in IT with annual gross at least 75-80K. I have to consider day care expenses if she starts working. Also we are planning for second child in future so my wife may take break from again in future.
3. We both have total of 270K in 401K (part of which I am planning to take as loan for down payment).
4. I have excellent credit score with no other debts except 325$ car lease.
5. Closing date is after April 15th next year.
I am now freaked out whether I would be able to pay all my bills (PMI, HOA, Mello Roos, 401K loan repayment, car lease, day care (if any), other monthly expenses) or have too much debt to deal with on monthly basis. Now I am wondering if I should let go of 25K earnest money or look for other options if I have to go with mortgage loan. Also please suggest if there is a way if I could get all or at least portion of my earnest amount.
I really appreciate all your expert suggestions on this.
Thanks,
Biku