I do a lot in the personal finance space, but would really appreciate a second opinion on an upcoming home purchase to know if I'm crazy or not. As it seems crazy to me.
32, married, 1 kid(4 years old). About 210k household income, up to 240k with bonuses. North East kinda sorta closeish to Boston so it's not cheap to live here.
Assets:
A little over a million total net worth including retirement
125k cash
150k taxable brokerage
340k current house proceeds (~500k house currently according to agent)
The plan:
The idea would be to throw about 400k at the next house (cash+house equity)
We are currently looking at houses upwards of 900k(hopefully less....). And that feels very uncomfortable mentally. The remaining mortgage balance on a 900k house for us would be about 500k, which comes out to right around $4,000 a month after taxes and insurance.
Current spending averages to around 6600-7k a month (I track this religiously) with our 2k mortgage
Does this sound incredibly dumb or reasonable in our situation.