That’s a lot of uncertainty and not much retirement savings. If you were miserable could maybe squint, but I wouldn’t.
learningstuff60s on
Yes you are. That’s a huge amount of debt to saddle yourself with considering the instability of your income.
fedswatching2121 on
What’s your liquidity? Emergency funds?
novahouseandhome on
Dream Home or Dream Life?
Are you saving at least $2500/month cash?
If you haven’t easily been putting $2500/month away, you need to look at your spending. Download all bank detail and credit card spending, categorize each expense, figure out what you’re willing to give up to bridge the gap.
Start now. Pay your mortgage, pay $2,500 into a savings account. See how it affects your lifestyle.
You’ll find out quickly whether a $5k payment is sustainable.
Everyone COULD eat peanut butter and jelly for 3 meals/day, never go on vacation, or go to the movies, not save for college, but is the higher payment worth giving up luxuries/savings in order to live in a dream house?
Strong-Diamond2111 on
That’s your wife’s almost entire salary that would go just to the mortgage
Artistic_Researcher2 on
Dont do it. Set your sights lower. You will be very glad you don’t have that pressure hanging over you…you will be thankful.
Naikrobak on
Yes. You’re a moron. This is VERY risky.
MotorBet234 on
Given your age, income volatility and retirement savings, I wouldn’t. You also didn’t mention current college savings for your kids – our oldest enters college next year and annual costs for private institutions before merit scholarships are easily $82k+. If I were you I’d stay where I was and funnel the excess income towards retirement and college savings.
chpsk8 on
So you both have incomes that would be hard to replicate if you lost your current positions.
Your job has a variable salary.
Your wife’s job has a stable salary but couldn’t be replicated quickly if needed.
Low retirement funds.
Two kids that rely on you for stability
High salary, and debt on a toy (camper)
I think you know the answer. Could you buy it? Sure.
Should you buy it? I don’t know why you are having a hard time just saying no. Unless you really like living in a van down by the river at some point, you should either wait until you can get a higher down payment, or aim lower. You are taking on too much risk with the primary asset and your primary need which is shelter.
CreativeBusiness6588 on
Yes if you can stop and pull out of this terrible decision, do. You know this
thewongtrain on
Not a moron. Just really in love with this house.
I think your dilemma is really about whether or not the privilege of living in your dream home is worth significantly constraining your cash flow moving forward for the next 30 years.
Also, you’re a business owner so there’s a lot more variation in your income. So would you have enough cushion to weather any downturns?
Would it be worth the stress?
Also, it doesn’t seem like you’re saving a lot for retirement. What’s your plan there?
MIFishGuy on
If I was in your exact position doing exactly what you are doing now I would say out loud in front of a mirror “You are a moron”
There is far too much debt, minimal savings for retirement and the job volatility. Be a hard no for me.
donaldyoung26 on
I have a fraction of your income and more than double your retirement savings. And I’m a lot younger. The dream home is actually a nightmare. It will come with closing fee costs, maintenance and repairs. You also have two young kids to worry about. 5k a month is a lot. My parents did a similar thing 30+ years ago. But they rode a wave that was insane and saw a 300% return on their investment. It’s highly unlikely you will see that kind of return on yours.
Last_Bad_2687 on
Don’t do it. You’ll want a different dream home in a year
ding_dong_dasher on
That’s really difficult to justify given your age and current non-RE assets.
If you had like a million put away already, sure splurge on the house. But you’re behind on retirement savings…
My opinion would be spend at least 5 years shoring that up before upgrading your home. Especially if your kids are pretty happy where you are now.
Foodiehunter on
I’m pretty pro RE purchase but it sounds like you really don’t need it. You checked off all the boxes most buyers are looking for in your current situation. What’s the motivation for the upgrade? Space? What if you just renovate? How old are you kids? How long will they stay in the house? With that in mind, do you have their education fund going? And how much savings do you have?
Added: sorry just saw the kids are in elementary. You got about 10yrs before they leave for college.
Aggressive_Chicken63 on
Hmm, so you made between $200k-$470k a year in the last 5 years, but you only have $240k in retirement? No savings?
That’s the main concern. If you couldn’t saved with $2600/month, then you will definitely be in trouble with $5k/month, but income wise, you can easily afford it.
FightScene on
You already have a nice home that your kids like in a good school district. And you want to sell it for a home that will cost you almost twice as much monthly despite you being a bit behind on retirement savings already?
I’m not going to mince words here. This Is a terrible financial decision. And pointless, as you’re not really upgrading your lifestyle with this “dream home”. You’d be taking on a huge financial burden just to keep up with the Jonses. Good luck.
000topchef on
At your age, you need to prioritise saving for retirement
FireRescue3 on
This is a terrible financial decision…
cherrycheesecake234 on
Sounds like staying in your current house is the way to go!
SnailOnARampage on
If the income was stable i think the mortgage is manageable.
Diligent_Heart2619 on
Don’t do it. Watch Fight Club lol
Starbuck522 on
How about a full refurb of your kitchen?
andrewscherer on
It’s maybe not a wise decision when you could dump more into retirement.
But it’s not a moronic move if your income is stable over the next few years. The mortgage payment would be around 25% of your income which isn’t absurd by any means.
BettyboopRNMedic on
Yes, you are. nuts. Stay where you are, happiness comes from within, not things like a bigger house. Also think of all the maintenance and repair costs that come with a bigger house, as well as more to clean etc. Your kids find happiness with your company, not with what you buy them, and if you are stuck spending all of your free time at a second job or maintaining this “dream” house they will actually be less happy.
Also get your ridiculous debt for a travel trailer paid off, did that bring you more happiness? Clearly not because you want more!
GET OFF ZILLOW!!
RecoverParticular620 on
Not a moron, but maybe not the best choice right now.
unread_note on
If your business is not steady I would stay away from a $5k mortgage. My business went form $180k to $50k this last year. Thats a bit extreme but in my case business was great for over a decade but the economy changed.
Few_Whereas5206 on
I think it is a poor decision to buy the 850k house. Repairs, property tax, utilities and mortgage payments will all be higher. Add to this that your jobs are not stable and hard to replace, it is a bad decision. Also, your retirement is low compared to your income.
unread_note on
Also the dream house gets old the minute your kids start doing what kids do. Ask me how I know.
Spaghet-3 on
Yes, you are a moron. Mostly for buying a travel trailer on credit.
But also, what kind of shit mortgage is this? $850k purchase with $280k down means you are financing $570k. At 6.5%, your P&I should be a hair over $3.6k/month. How are you getting $5k?! You’re getting screwed on the rate or somewhere else. Have you shopped this around at all?
chilitomlife on
Keep ur current home. Invest everything you can.It will pay off in the end. Live far below your means.
FiloGal on
May be a risky move, but you know that since you mentioned that you are a business owner. The upside is , you also know that high risk = high reward. God speed!!
[deleted] on
[deleted]
OrangeNice6159 on
Yes this is stupid
OprahAtOprahDotCom on
Bad idea , you’re probably underweighting the stress of the financial burden and overweighting how much happiness the house will bring you.
StardustSpectrum on
That is a huge jump from your current mortgage, and since you mentioned your income can be pretty volatile, it sounds risky. Even though the “dream home” is tempting, having that extra stress every month when business is slow might turn it into a source of anxiety rather than a happy place.
If your kids are happy and the current house is nice, maybe you could wait and focus on beefing up those retirement savings for a bit? You have a good thing going right now with the lower payment, so there is no rush to jump into something that makes you feel this unsure.
mzx380 on
I have a stable income and my wife makes more than I do . We bring in about 350k a year and have about 300k down for a home in NYC and the only places we see that won’t have huge renovation costs would run us about 5k a month . I’m curious as to where you are looking
Kittypie75 on
IMHO that’s overleveraging and why I think we are in for a correction. I’m having a hard time finding a 3bd apt (not a house) for sale with a mortgage/maintenance under $6k/mo in the suburbs of our VHCOL area. We have zero debt (besides our current mortgage), make $300k/year, max out our retirement and kid’s college funds… but then I have to add camps, after school activities, etc. $6k/mo would leave us house poor. We aren’t moving until we can find something under $5k/mo which is proving hard.
We are in a 2 bd now, and we just need 1 extra bedroom. I’m not going to almost triple my payments for 1 room.
momofgabby12 on
One simple question. Hope this does not happen. If one of you lost a job or got sick can you live on one paycheck?
VirginiaVN900 on
Im very close to the demographic you mentioned, but DINK.
I felt like a montage of $3K was irresponsible of me, but I based that number on being able to take a 40% pay cut (from your stated income) and still carry on without much stress.
I wanted to factor if my remote job prospects evaporated and I’d need to carry the mortgage on the salaries in my market.
That said, I’m putting nearly 20% into retirement per month for as long as I can.
rumpleforeskih on
I wouldn’t be able to sleep at night..
Aksudiigkr on
What does the house have that your current living situation is missing?
the--wall on
I make about what you and your wife make (28yo — also have volatile non-easily replaceable income), I wouldn’t go near that would a 100ft pole.
Nossa30 on
That’s a boatload of risk. Are you certain you will always be able to make $10K a month for 30 years?
IMO, the mortgage you have now is what I would say Is a safe bet and you’d be able to ride out any storm.
Struggle_Usual on
Phew yes that’s a very stupid idea. Please stay where you are and amp up your savings. Even if you could afford it (you can’t) that’s super risky if either of you were to see a downturn in income since it’s not easily replaceable. Just invest a little in a renovation to your existing home to feel happier there. Plus it gives some of that same dopamine of a new whatever.
jeffislouie on
I’d advise against that much house on a variable income you clearly think is volatile.
Maybe scale back a bit in terms of your next home or stay in your current home until you figure out how to grow your savings and retirement accounts.
$5k a month in just mortgage aka $60,000 per year for 30 years.
If you had savings and retirement squared away and more confidence with your income floor (or, perhaps, didn’t have kids to worry about), this would be a different analysis entirely.
As a Dad and business owner, the hard part is figuring out when to take on that much risk.
Psiwolf on
I bought a $1mm home back in november of 2024. At the time, we overspent by $250k, but my NW was about $8mm and my 2024 income was about $1.2mm so I pulled the trigger, since this was a forever home we found after 3 years of looking.
I put approximately $250k down and went with a conventional loan for the remainder. In 1 year I am down to under $500k left on the loan. Meanwhile, my NW was grown to about $10mm.
I know I’m pretty conservative, but If I were in your position, I would not buy the house you are entertaining. I would rather take that money and invest it so I have multiple income streams and not dependent on only earned income, which according to you, is volatile.
Realistic_Ant_1226 on
Not far from average, and depends on state you living.
49 Comments
That’s a lot of uncertainty and not much retirement savings. If you were miserable could maybe squint, but I wouldn’t.
Yes you are. That’s a huge amount of debt to saddle yourself with considering the instability of your income.
What’s your liquidity? Emergency funds?
Dream Home or Dream Life?
Are you saving at least $2500/month cash?
If you haven’t easily been putting $2500/month away, you need to look at your spending. Download all bank detail and credit card spending, categorize each expense, figure out what you’re willing to give up to bridge the gap.
Start now. Pay your mortgage, pay $2,500 into a savings account. See how it affects your lifestyle.
You’ll find out quickly whether a $5k payment is sustainable.
Everyone COULD eat peanut butter and jelly for 3 meals/day, never go on vacation, or go to the movies, not save for college, but is the higher payment worth giving up luxuries/savings in order to live in a dream house?
That’s your wife’s almost entire salary that would go just to the mortgage
Dont do it. Set your sights lower. You will be very glad you don’t have that pressure hanging over you…you will be thankful.
Yes. You’re a moron. This is VERY risky.
Given your age, income volatility and retirement savings, I wouldn’t. You also didn’t mention current college savings for your kids – our oldest enters college next year and annual costs for private institutions before merit scholarships are easily $82k+. If I were you I’d stay where I was and funnel the excess income towards retirement and college savings.
So you both have incomes that would be hard to replicate if you lost your current positions.
Your job has a variable salary.
Your wife’s job has a stable salary but couldn’t be replicated quickly if needed.
Low retirement funds.
Two kids that rely on you for stability
High salary, and debt on a toy (camper)
I think you know the answer. Could you buy it? Sure.
Should you buy it? I don’t know why you are having a hard time just saying no. Unless you really like living in a van down by the river at some point, you should either wait until you can get a higher down payment, or aim lower. You are taking on too much risk with the primary asset and your primary need which is shelter.
Yes if you can stop and pull out of this terrible decision, do. You know this
Not a moron. Just really in love with this house.
I think your dilemma is really about whether or not the privilege of living in your dream home is worth significantly constraining your cash flow moving forward for the next 30 years.
Also, you’re a business owner so there’s a lot more variation in your income. So would you have enough cushion to weather any downturns?
Would it be worth the stress?
Also, it doesn’t seem like you’re saving a lot for retirement. What’s your plan there?
If I was in your exact position doing exactly what you are doing now I would say out loud in front of a mirror “You are a moron”
There is far too much debt, minimal savings for retirement and the job volatility. Be a hard no for me.
I have a fraction of your income and more than double your retirement savings. And I’m a lot younger. The dream home is actually a nightmare. It will come with closing fee costs, maintenance and repairs. You also have two young kids to worry about. 5k a month is a lot. My parents did a similar thing 30+ years ago. But they rode a wave that was insane and saw a 300% return on their investment. It’s highly unlikely you will see that kind of return on yours.
Don’t do it. You’ll want a different dream home in a year
That’s really difficult to justify given your age and current non-RE assets.
If you had like a million put away already, sure splurge on the house. But you’re behind on retirement savings…
My opinion would be spend at least 5 years shoring that up before upgrading your home. Especially if your kids are pretty happy where you are now.
I’m pretty pro RE purchase but it sounds like you really don’t need it. You checked off all the boxes most buyers are looking for in your current situation. What’s the motivation for the upgrade? Space? What if you just renovate? How old are you kids? How long will they stay in the house? With that in mind, do you have their education fund going? And how much savings do you have?
Added: sorry just saw the kids are in elementary. You got about 10yrs before they leave for college.
Hmm, so you made between $200k-$470k a year in the last 5 years, but you only have $240k in retirement? No savings?
That’s the main concern. If you couldn’t saved with $2600/month, then you will definitely be in trouble with $5k/month, but income wise, you can easily afford it.
You already have a nice home that your kids like in a good school district. And you want to sell it for a home that will cost you almost twice as much monthly despite you being a bit behind on retirement savings already?
I’m not going to mince words here. This Is a terrible financial decision. And pointless, as you’re not really upgrading your lifestyle with this “dream home”. You’d be taking on a huge financial burden just to keep up with the Jonses. Good luck.
At your age, you need to prioritise saving for retirement
This is a terrible financial decision…
Sounds like staying in your current house is the way to go!
If the income was stable i think the mortgage is manageable.
Don’t do it. Watch Fight Club lol
How about a full refurb of your kitchen?
It’s maybe not a wise decision when you could dump more into retirement.
But it’s not a moronic move if your income is stable over the next few years. The mortgage payment would be around 25% of your income which isn’t absurd by any means.
Yes, you are. nuts. Stay where you are, happiness comes from within, not things like a bigger house. Also think of all the maintenance and repair costs that come with a bigger house, as well as more to clean etc. Your kids find happiness with your company, not with what you buy them, and if you are stuck spending all of your free time at a second job or maintaining this “dream” house they will actually be less happy.
Also get your ridiculous debt for a travel trailer paid off, did that bring you more happiness? Clearly not because you want more!
GET OFF ZILLOW!!
Not a moron, but maybe not the best choice right now.
If your business is not steady I would stay away from a $5k mortgage. My business went form $180k to $50k this last year. Thats a bit extreme but in my case business was great for over a decade but the economy changed.
I think it is a poor decision to buy the 850k house. Repairs, property tax, utilities and mortgage payments will all be higher. Add to this that your jobs are not stable and hard to replace, it is a bad decision. Also, your retirement is low compared to your income.
Also the dream house gets old the minute your kids start doing what kids do. Ask me how I know.
Yes, you are a moron. Mostly for buying a travel trailer on credit.
But also, what kind of shit mortgage is this? $850k purchase with $280k down means you are financing $570k. At 6.5%, your P&I should be a hair over $3.6k/month. How are you getting $5k?! You’re getting screwed on the rate or somewhere else. Have you shopped this around at all?
Keep ur current home. Invest everything you can.It will pay off in the end. Live far below your means.
May be a risky move, but you know that since you mentioned that you are a business owner. The upside is , you also know that high risk = high reward. God speed!!
[deleted]
Yes this is stupid
Bad idea , you’re probably underweighting the stress of the financial burden and overweighting how much happiness the house will bring you.
That is a huge jump from your current mortgage, and since you mentioned your income can be pretty volatile, it sounds risky. Even though the “dream home” is tempting, having that extra stress every month when business is slow might turn it into a source of anxiety rather than a happy place.
If your kids are happy and the current house is nice, maybe you could wait and focus on beefing up those retirement savings for a bit? You have a good thing going right now with the lower payment, so there is no rush to jump into something that makes you feel this unsure.
I have a stable income and my wife makes more than I do . We bring in about 350k a year and have about 300k down for a home in NYC and the only places we see that won’t have huge renovation costs would run us about 5k a month . I’m curious as to where you are looking
IMHO that’s overleveraging and why I think we are in for a correction. I’m having a hard time finding a 3bd apt (not a house) for sale with a mortgage/maintenance under $6k/mo in the suburbs of our VHCOL area. We have zero debt (besides our current mortgage), make $300k/year, max out our retirement and kid’s college funds… but then I have to add camps, after school activities, etc. $6k/mo would leave us house poor. We aren’t moving until we can find something under $5k/mo which is proving hard.
We are in a 2 bd now, and we just need 1 extra bedroom. I’m not going to almost triple my payments for 1 room.
One simple question. Hope this does not happen. If one of you lost a job or got sick can you live on one paycheck?
Im very close to the demographic you mentioned, but DINK.
I felt like a montage of $3K was irresponsible of me, but I based that number on being able to take a 40% pay cut (from your stated income) and still carry on without much stress.
I wanted to factor if my remote job prospects evaporated and I’d need to carry the mortgage on the salaries in my market.
That said, I’m putting nearly 20% into retirement per month for as long as I can.
I wouldn’t be able to sleep at night..
What does the house have that your current living situation is missing?
I make about what you and your wife make (28yo — also have volatile non-easily replaceable income), I wouldn’t go near that would a 100ft pole.
That’s a boatload of risk. Are you certain you will always be able to make $10K a month for 30 years?
IMO, the mortgage you have now is what I would say Is a safe bet and you’d be able to ride out any storm.
Phew yes that’s a very stupid idea. Please stay where you are and amp up your savings. Even if you could afford it (you can’t) that’s super risky if either of you were to see a downturn in income since it’s not easily replaceable. Just invest a little in a renovation to your existing home to feel happier there. Plus it gives some of that same dopamine of a new whatever.
I’d advise against that much house on a variable income you clearly think is volatile.
Maybe scale back a bit in terms of your next home or stay in your current home until you figure out how to grow your savings and retirement accounts.
$5k a month in just mortgage aka $60,000 per year for 30 years.
If you had savings and retirement squared away and more confidence with your income floor (or, perhaps, didn’t have kids to worry about), this would be a different analysis entirely.
As a Dad and business owner, the hard part is figuring out when to take on that much risk.
I bought a $1mm home back in november of 2024. At the time, we overspent by $250k, but my NW was about $8mm and my 2024 income was about $1.2mm so I pulled the trigger, since this was a forever home we found after 3 years of looking.
I put approximately $250k down and went with a conventional loan for the remainder. In 1 year I am down to under $500k left on the loan. Meanwhile, my NW was grown to about $10mm.
I know I’m pretty conservative, but If I were in your position, I would not buy the house you are entertaining. I would rather take that money and invest it so I have multiple income streams and not dependent on only earned income, which according to you, is volatile.
Not far from average, and depends on state you living.