roundcorners
New member
This thread is for people who are thinking of buying a home, but specifically Scuba Steve. Please don't feel like I'm picking on you Steve, but you seem to be a good sport about answering some questions before. I'm sure you sketch out some rough estimates of you much your new house is going to cost your family, but I just want to do some calculations myself and see how much it would take to buy a new home.
I'm just going to take a Monterey Plan 3 because it's one of the few plans that I have all the information.
Home Costs: $571,600
Down Payment (20%): $114,320
Interest Rate: 5%
30-Year Fix
Expenses
Mortgage Costs Alone: $2,451.56/month
Total interest deduction 1st year: $22,680.99
Tax/HOA/Maintenance/Insurance/: $1,329.13/month
True Total Housing Costs: $3,780.68 / month
Income
Income Required (True Home x3): $11,342.04 / month
Net Income Required: $136,104 / year
2007
Median household income: $98,923
Median income for a family is: $111,455
Gross Income Required (with tax deduction): $154,245
Cash Required at Purchase
Down Payment: $114,320
Six Months Living Expenses: $68,052
Landscaping: $20,000
Furniture: $20,000
Total Cash Needed: $222,372
There I hope I hit all the right numbers; you mention that you guys don't have kids yet; but your in-laws are willing to help. But here are some contingencies that might come up.
1) What if you wife has a difficult pregnancy like my wife and can't work?
2) What if your wife doesn't want to return to work and be a full time mom?
3) What if you require a nanny or child-care after-all?
4) What if your child requires special needs?
5) What if you like Panda end up having twins/triplets?
6) What if your wife's hours are cut because of recession or child care?
7) What if one of you guys gets laid-off?
Again I'm not trying to pick on you; these are questions that I ask myself and have to build margins for. I'm not being pessimistic or discouraging, I just want to be fiscally conservative and prepared.
How much stress can you take? Again you sound like a fairly balanced person with a good wife and friends. But what if:
1) You start having marital problems after the honeymoon wears off and require counseling?
2) What if your grad-program requires more than you can handle?
3) What if like most of us recent grads, you don't get the raise or promotion after you graduate?
4) What if you hit a rough season at work?
As always, you don't have to answer each question; you can answer generalities if you like. I'm sure as a person in b-school you've already done your own calculations, income projections & expenses. How far off am I? Or are you just hoping for the best?
I'm just going to take a Monterey Plan 3 because it's one of the few plans that I have all the information.
Home Costs: $571,600
Down Payment (20%): $114,320
Interest Rate: 5%
30-Year Fix
Expenses
Mortgage Costs Alone: $2,451.56/month
Total interest deduction 1st year: $22,680.99
Tax/HOA/Maintenance/Insurance/: $1,329.13/month
True Total Housing Costs: $3,780.68 / month
Income
Income Required (True Home x3): $11,342.04 / month
Net Income Required: $136,104 / year
2007
Median household income: $98,923
Median income for a family is: $111,455
Gross Income Required (with tax deduction): $154,245
Cash Required at Purchase
Down Payment: $114,320
Six Months Living Expenses: $68,052
Landscaping: $20,000
Furniture: $20,000
Total Cash Needed: $222,372
There I hope I hit all the right numbers; you mention that you guys don't have kids yet; but your in-laws are willing to help. But here are some contingencies that might come up.
1) What if you wife has a difficult pregnancy like my wife and can't work?
2) What if your wife doesn't want to return to work and be a full time mom?
3) What if you require a nanny or child-care after-all?
4) What if your child requires special needs?
5) What if you like Panda end up having twins/triplets?
6) What if your wife's hours are cut because of recession or child care?
7) What if one of you guys gets laid-off?
Again I'm not trying to pick on you; these are questions that I ask myself and have to build margins for. I'm not being pessimistic or discouraging, I just want to be fiscally conservative and prepared.
How much stress can you take? Again you sound like a fairly balanced person with a good wife and friends. But what if:
1) You start having marital problems after the honeymoon wears off and require counseling?
2) What if your grad-program requires more than you can handle?
3) What if like most of us recent grads, you don't get the raise or promotion after you graduate?
4) What if you hit a rough season at work?
As always, you don't have to answer each question; you can answer generalities if you like. I'm sure as a person in b-school you've already done your own calculations, income projections & expenses. How far off am I? Or are you just hoping for the best?