Tenmaru45 OP t1_j2bf1g9 wrote on December 31, 2022 at 12:30 AM

Reply to comment by biondablonde in Can I afford a new home in this market? by Tenmaru45

Ah, good point. I make $75k pre-tax.

My home has appreciated due to updating our kitchen and being close to an area of regentrification--although how much it's worth now I don't formally know.

Basically my wife wants to have a bigger yard for our family/boys and to get away from some neighbors, an extra room since I've been WFH, etc. However, I think this is more of a long-term home if not a forever home due to the financials.

Interesting-Dish8894 t1_j2bh69v wrote on December 31, 2022 at 12:45 AM

Making 75 k gross and no other debt with todays interest rates then a mortgage of 225k would be a stretch with seven mouths to feed

You’re going to have to sell your house before buying a new one

biondablonde t1_j2blsxp wrote on December 31, 2022 at 1:20 AM

You have sufficient equity in your current home to cover the down payment on a larger/more expensive new one, most likely, but given that you are a sole breadwinner for a family of 7 I don't know that I would feel comfortable spending more than you are now. Given interest rates, you'll pay quite a bit more monthly for the same size loan you have now anyway. If you change locations, can you get a larger place for around the same price? How many years before your spouse intends to re-enter the work force (if ever)?

Tenmaru45 OP t1_j2dgpgv wrote on December 31, 2022 at 1:00 PM

That's what I'm thinking too. Maybe we if move more into the country, but then again getting more land than what we have now will probably counter any savings not living in a nice area of the city.

Depending on homeschooling etc., wife may not enter back into the workforce for at least 17 years.