Buying a new home. Having a panic attack.
Hi all. Long time listener of the show but not a contributor here.
Long boring story short:
* gross income is 240k a year for me and my wife, I don’t include bonuses in gross because I don’t rely on them.
*401k/403b/529s are very healthy for our current age. No worries there.
* putting 20% down in cash at our price, all available and liquid
* 2 kids, about $2k a month in daycare costs, this is falling because our oldest is finally aging out and our youngest is on the downward slide now.
* no other debt
We’re in our starter home. It’s too small, neighborhood is…eh…and the local schools are a mess, like non negotiable mess. We gotta move, and I want to move is to a good location with a good school system to support us. We found a great place, gorgeous, at 590k and jumped at it. According to all the rules from money guy we’re good, more than good even when I consider the kids daycare as debt. Same with financial samurai, the only one I don’t satisfy is Ramsey, I’d be at like 30% of net for the mortgage, not quite 25%. We gotta sell our currently place and we should come out of it with a tidy profit of like $150k after all is said and done so I’m not going to be dangling in the wind…I’ve been thinking about doing a recast but that’s a few months down the road according to my servicer.
However, I feel like the walls are closing in. $4k a month mortgage makes me want to hurl and it’s causing me a lot of stress because I want this for my family. I guess I just need someone to validate that this isn’t a terrible decision and I’m not going to be destitute? Sorry if this is a low quality post.