Do you think we’ll be house poor?
Hi everyone! My husband and I (32M/30F) are first time home buyers. We just put an offer in on a house and later on the panic set in on if we can afford it.
We’re in Northern NJ so HCOL. I have an income of about 103k before overtime and my husband about 100k with overtime but he’s a first responder so gets yearly bumps in base salary. Gross take home is about 14k; my husband’s OT can add about 1-2k on top of that (net). No student loans but we both have about 1k combined each month for car loans. Minimal CC debt. About 175k combined in 401ks. My credit is 800+, his is about 750.
Our parents are super generous and have offered to give us the money for our down payment which is 40k. We offered 550k for the house. On a conventional loan with an average of 6.5% our total monthly payment with property taxes would be about $4300.
My husband is eligible for a first responders loan which gives us a 5.25% rate. It only allows an 85% LTV- so we would have to take out another mortgage to cover the remaining 7% down payment since we’re only putting down 40k. With all of that, the total with property taxes would be about $3900.
We also would have a remaining of about 30k in savings since our parents are covering the down payment.
Any insight is appreciated!