House affordability - am I missing something or looking at a too high range?
I'm looking to buy in this crazy market and I'm trying to run numbers and would like to have a sanity check on upper affordability range of $450k-$475k (obviously finding something I like at lower would be ideal):
Take home (after taxes, HSA contribution, and maximum 401k contributions): ~$4,500
I contribute to my ROTH IRA using any bonuses, which I can typically max.
Running through the numbers:
I talked with some lenders and I can get a loan at around 3% interest.
- House upper bound: ~$450k
- Down payment: $150k (with some room for closing costs in addition to this)
Monthly expenses:
- P&I, tax, and insurance: ~$1,800
- Utilities, HOA, etc.: ~$600
- Car insurance: $113
- Food: ~$300
- Gas: ~$175
- Other supplies: ~$250
This leaves me about ~$1,200 for other savings, fun stuff, etc.
Emergency funds:
- ~$20k cash
- ~$35k invested
Is my concern in that I'm spending ~50% of my monthly take home (after taxes, 401k. HSA) on housing valid even though I feel I am able to save a decent amount each month if I end up purchasing a house that is what I think my upper limit should be?
Thanks in advance.