How much downpayment required

[Scarlett]

I am in a similar situation, similar income though older with young kids and both of us are working full time (and plan to continue so). You should find something for which the total PITI (yes, add property taxes and mortgage and house insurance to your principal+interest) is comparable to your rent, which I assume you are pretty comfortable paying (but take into account your wife may not work anymore). Then work your numbers backwards from there. That’s what you can afford. (If you are not saving any money with current rent plus your wife’s income, then you should reduce the PITI amount by at least $500-1000).

I don’t know where you work and how comfortable you are commuting long distances, but it may not make sense to buy somewhere where the commute is over 1 hr one way. We owned a townhome and once we had kids we didn’t want for each of us to spend 45′ each way at rush hour commuting. We wanted to spend as much time as we could with the kids, plus all the chores that come along with it. So we sold. And I wouldn’t buy there that far from work again, at least not until my kids are in college. I set my commute time limit to 30′, tops.

Given your situation, I’d continue to rent something small another 2-3 years and save more money – ideally until your child starts preschool or kindergarten. Defnitely wait until you have the kid(s), your life will change dramatically. You will realize how expensive kids can be – if they grow out of something, then there is something else that costs more money than it should. Then you will figure out where you are – income/jobs wise, as well as how much your expenses are(college funds, daycare, activities…). Hopefully by then the coastal houses, and 56 corridor (PUSD) (that’s where we are looking) will go down some more.

Good luck!

[UCGal]

I have to agree with TG and Scarlett.
Buying with too high a debt/income ratio will add stress – and if you’re looking at kids… they add enough stress. (I have kids. Love them, but they add stress to my life.)

Right now it seems much more affordable to rent than to own. Perhaps that will change, but for now that’s what I’m seeing.

If we hadn’t had equity from two homes (hubby and I both owned houses when we met) to put down, we’d be renting.

Look honestly at the PITA compared to your current rent. Factor in less income from your wife. If she stays at home, zero income. If she works, even part time, look at daycare costs. San Diego has outragiously expensive daycare costs. (When my youngest was an infant, and oldest was 2 – we paid more in daycare/month than our mortgage payment… and we have a relatively small mortgage!)

My gut says to advise to keep renting and keep saving.

[UCGal]

I have to agree with TG and Scarlett.
Buying with too high a debt/income ratio will add stress – and if you’re looking at kids… they add enough stress. (I have kids. Love them, but they add stress to my life.)

Right now it seems much more affordable to rent than to own. Perhaps that will change, but for now that’s what I’m seeing.

If we hadn’t had equity from two homes (hubby and I both owned houses when we met) to put down, we’d be renting.

Look honestly at the PITA compared to your current rent. Factor in less income from your wife. If she stays at home, zero income. If she works, even part time, look at daycare costs. San Diego has outragiously expensive daycare costs. (When my youngest was an infant, and oldest was 2 – we paid more in daycare/month than our mortgage payment… and we have a relatively small mortgage!)

My gut says to advise to keep renting and keep saving.

[UCGal]

I have to agree with TG and Scarlett.
Buying with too high a debt/income ratio will add stress – and if you’re looking at kids… they add enough stress. (I have kids. Love them, but they add stress to my life.)

Right now it seems much more affordable to rent than to own. Perhaps that will change, but for now that’s what I’m seeing.

If we hadn’t had equity from two homes (hubby and I both owned houses when we met) to put down, we’d be renting.

Look honestly at the PITA compared to your current rent. Factor in less income from your wife. If she stays at home, zero income. If she works, even part time, look at daycare costs. San Diego has outragiously expensive daycare costs. (When my youngest was an infant, and oldest was 2 – we paid more in daycare/month than our mortgage payment… and we have a relatively small mortgage!)

My gut says to advise to keep renting and keep saving.

[UCGal]

I have to agree with TG and Scarlett.
Buying with too high a debt/income ratio will add stress – and if you’re looking at kids… they add enough stress. (I have kids. Love them, but they add stress to my life.)

Right now it seems much more affordable to rent than to own. Perhaps that will change, but for now that’s what I’m seeing.

If we hadn’t had equity from two homes (hubby and I both owned houses when we met) to put down, we’d be renting.

Look honestly at the PITA compared to your current rent. Factor in less income from your wife. If she stays at home, zero income. If she works, even part time, look at daycare costs. San Diego has outragiously expensive daycare costs. (When my youngest was an infant, and oldest was 2 – we paid more in daycare/month than our mortgage payment… and we have a relatively small mortgage!)

My gut says to advise to keep renting and keep saving.

[UCGal]

I have to agree with TG and Scarlett.
Buying with too high a debt/income ratio will add stress – and if you’re looking at kids… they add enough stress. (I have kids. Love them, but they add stress to my life.)

Right now it seems much more affordable to rent than to own. Perhaps that will change, but for now that’s what I’m seeing.

If we hadn’t had equity from two homes (hubby and I both owned houses when we met) to put down, we’d be renting.

Look honestly at the PITA compared to your current rent. Factor in less income from your wife. If she stays at home, zero income. If she works, even part time, look at daycare costs. San Diego has outragiously expensive daycare costs. (When my youngest was an infant, and oldest was 2 – we paid more in daycare/month than our mortgage payment… and we have a relatively small mortgage!)

My gut says to advise to keep renting and keep saving.

[an]

TG, there are 300-325k house in Mira Mesa. You just won’t get 3000 sq-ft house for 300k here though. It’s really up to your priority, size vs commute distance. I pick commute distance. There’s nothing like going home for lunch and hang out w/ your kids for 1/2 hour mid day. Not to mention the $ you save from eating at home, the money you save from utility and maintenance of a small house vs a big house, etc. I agree with your # though. I wouldn’t go much above $350k loan if you make $100k. $350k loan w/ 4.5% 30 years will be about $1800/month. If you put 10% away to your 401k, your take home monthly is about $5200. $1800 (PI) or ~$2300 (PITI) isn’t too bad for a take home of $5200.

[an]

TG, there are 300-325k house in Mira Mesa. You just won’t get 3000 sq-ft house for 300k here though. It’s really up to your priority, size vs commute distance. I pick commute distance. There’s nothing like going home for lunch and hang out w/ your kids for 1/2 hour mid day. Not to mention the $ you save from eating at home, the money you save from utility and maintenance of a small house vs a big house, etc. I agree with your # though. I wouldn’t go much above $350k loan if you make $100k. $350k loan w/ 4.5% 30 years will be about $1800/month. If you put 10% away to your 401k, your take home monthly is about $5200. $1800 (PI) or ~$2300 (PITI) isn’t too bad for a take home of $5200.

[an]

TG, there are 300-325k house in Mira Mesa. You just won’t get 3000 sq-ft house for 300k here though. It’s really up to your priority, size vs commute distance. I pick commute distance. There’s nothing like going home for lunch and hang out w/ your kids for 1/2 hour mid day. Not to mention the $ you save from eating at home, the money you save from utility and maintenance of a small house vs a big house, etc. I agree with your # though. I wouldn’t go much above $350k loan if you make $100k. $350k loan w/ 4.5% 30 years will be about $1800/month. If you put 10% away to your 401k, your take home monthly is about $5200. $1800 (PI) or ~$2300 (PITI) isn’t too bad for a take home of $5200.

[an]

TG, there are 300-325k house in Mira Mesa. You just won’t get 3000 sq-ft house for 300k here though. It’s really up to your priority, size vs commute distance. I pick commute distance. There’s nothing like going home for lunch and hang out w/ your kids for 1/2 hour mid day. Not to mention the $ you save from eating at home, the money you save from utility and maintenance of a small house vs a big house, etc. I agree with your # though. I wouldn’t go much above $350k loan if you make $100k. $350k loan w/ 4.5% 30 years will be about $1800/month. If you put 10% away to your 401k, your take home monthly is about $5200. $1800 (PI) or ~$2300 (PITI) isn’t too bad for a take home of $5200.

[an]

TG, there are 300-325k house in Mira Mesa. You just won’t get 3000 sq-ft house for 300k here though. It’s really up to your priority, size vs commute distance. I pick commute distance. There’s nothing like going home for lunch and hang out w/ your kids for 1/2 hour mid day. Not to mention the $ you save from eating at home, the money you save from utility and maintenance of a small house vs a big house, etc. I agree with your # though. I wouldn’t go much above $350k loan if you make $100k. $350k loan w/ 4.5% 30 years will be about $1800/month. If you put 10% away to your 401k, your take home monthly is about $5200. $1800 (PI) or ~$2300 (PITI) isn’t too bad for a take home of $5200.

[temeculaguy]

AN, I was joking about him moving to temecula, I was trying to drive home a point about being “pushed inland” vs. income ratios. It’s all about balance and he has to find his. Some people would prefer a closer drive, some would prefer to rent, some prefer to not have kids. The point is, decisions will have to be made because on 100k, you don’t get it all, you don’t get a half million dollar home on the coast and a stay at home wife, you pick the sacrifice that works for you. I like him, he has his head screwed on straight and is thinking about it ahead of time as opposed to afterwards, me, I make my mistakes first, then learn.

[temeculaguy]

AN, I was joking about him moving to temecula, I was trying to drive home a point about being “pushed inland” vs. income ratios. It’s all about balance and he has to find his. Some people would prefer a closer drive, some would prefer to rent, some prefer to not have kids. The point is, decisions will have to be made because on 100k, you don’t get it all, you don’t get a half million dollar home on the coast and a stay at home wife, you pick the sacrifice that works for you. I like him, he has his head screwed on straight and is thinking about it ahead of time as opposed to afterwards, me, I make my mistakes first, then learn.

[temeculaguy]

AN, I was joking about him moving to temecula, I was trying to drive home a point about being “pushed inland” vs. income ratios. It’s all about balance and he has to find his. Some people would prefer a closer drive, some would prefer to rent, some prefer to not have kids. The point is, decisions will have to be made because on 100k, you don’t get it all, you don’t get a half million dollar home on the coast and a stay at home wife, you pick the sacrifice that works for you. I like him, he has his head screwed on straight and is thinking about it ahead of time as opposed to afterwards, me, I make my mistakes first, then learn.

[temeculaguy]

AN, I was joking about him moving to temecula, I was trying to drive home a point about being “pushed inland” vs. income ratios. It’s all about balance and he has to find his. Some people would prefer a closer drive, some would prefer to rent, some prefer to not have kids. The point is, decisions will have to be made because on 100k, you don’t get it all, you don’t get a half million dollar home on the coast and a stay at home wife, you pick the sacrifice that works for you. I like him, he has his head screwed on straight and is thinking about it ahead of time as opposed to afterwards, me, I make my mistakes first, then learn.

[Author]

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