u/American_Man1997

Partner and I are under contract for a new build that’s expected to be done in December. We are having serious 2nd thoughts and don’t know what to do. If we back out, there’s a chance we lose $25k in earnest money, but interest rates are only increasing and would give us less flexibility month to month.

This topic has consumed our lives over the past several weeks. We’ve never stressed about money before this and now it’s all we talk about.

For more context:
- 29M / 27F w newborn baby
- Investments - $275k
- Cash - $150k
- No debt
- If we don’t buy, we would rent a bigger place, but it would be much cheaper than if we bought. Probably $2k less per month.

Potential mortgage - 6k/month
Take home pay avg - $15k/month

Any advice?

We’re currently renting, but considering buying a house to raise a family and put down roots. It will cost more to own, but we will be in a better neighborhood, closer to family, and love the house.

After all expenses we will have about $2500/month left over to save or invest in our brokerage. We already put 12% into our 401k and don’t plan on changing that.

Estimated expenses include:
- mortgage (PITI, utilities, internet, etc)
- child care
- food
- transportation
- dining out/entertainment
- misc expenses
- extra we can’t predict

Is $2500/month enough cushion with 1 kid and a new build house?

Thanks in advance for any advice. Just a new dad with no one to talk about this with other than my wife.

EDIT
- 29M & 26F w/ newborn
- HHI of $280k-350k
- Investments $260k
- Cash $200k - higher for down payment. Will keep 60k for emergency fund
- House $550k, 10%-20% down, 7.25% APR

We max out our Roth IRA via back door, but want a brokerage account for a bridge account to retire at 55

29M and 26F, married, first baby due this year, and planning on buying a 600k house.

Combined income is roughly $350k/year w/ bonuses. On a slower year it could be $280k which is roughly 15k/month take home after 401k and taxes. Total monthly expenses will be 12k/month. 5k mortgage, 2k childcare, 5k bills, food, entertainment, shopping, etc.

We have $255k invested, $205k cash, and a 15k car loan that we will pay off after closing on the house.

Will put 10% down (75k down/closing), keep 60k in savings for emergencies, 25k to furnish the house, and 15k to pay off the car. Not sure what to do with the other 30k.

1. Assuming 280k income. Is this too much house?
2. Should I put the extra 30k down on the house given the interest rates or invest in a brokerage?

Any advice would be greatly appreciated.

First post on Reddit so here goes nothing.

29M and 26F, married, first baby due this year, and planning on buying a 600k house.

Combined income is roughly $350k/year w/ bonuses. On a slower year it could be $280k which is roughly 15k take home after 401k and taxes. Total monthly expenses will be 12k/month. 5k mortgage, 2k childcare, 5k bills, food, entertainment, shopping, etc.

We have $255k invested, $205k cash, and a 15k car loan that we will pay off after closing on the house.

Putting 10% down (75k down/closing), keep 60k in savings for emergencies, 25k to furnish the house, and 15k to pay off the car. Not sure what to do with the other 30k.

1. Assuming 280k income. Is this too much house?
2. Should I put the extra 30k down on the house given the interest rates or invest in a brokerage?

Any advice would be greatly appreciated.