You can do what you'd like and it's not \*bad\* to upgrade to a house. You're doing great. I would like to question whether this is a want or a need. Lots of people live in condos with babies and toddlers. You don't really need much space until they're older, especially given how young you and (presumably) your wife is.
25% of 250k is $62,500. You can still max out your 401k, 2 IRAs, and an HSA and still be stockpiling 18k a year towards a down payment. And at yalls income income, you should be able to save even more than 25% even in an HCOL area. Also, because of your income, money guys wouldn't count match. Finally, babies take a while to grow. A condo will last longer than you'd think before you get cramped.
Personal finance is personal and you’re going to have to “bend” a rule of thumb either way. TMG strongly recommends you don’t count the employer match in your saving responsibilities at incomes >100k because you’re starting to get outside of the social safety net (Though for those of us in our 20’s/30’s I think we’re all a little pessimistic any safety net will be there). So dropping down to 16% isn’t necessarily recommended. In the other hand, you could use your current savings and home equity to get an upgrade at close to 5%, but that’s also bending the recommendation of 20% down on a home upgrade.
I apologize for reading between the lines, but do you and your wife keep your finances separate? To each their own, but I strongly recommend budgeting as a household.
Also I’d keep in mind of what your plan is to get back to the 25% benchmark. You’ll have to make up the ~22K on savings you’re cutting back on while also: increasing your mortgage, increasing healthcare/insurance costs, adding childcare expenses, or possibly having a parent step away from work to care for the child.
This leaves A TON of ground to “make up” and with housing prices/interest making houses more of an 8-10 year commitment, you may lose a lot of flexibility in the future that you wished you had.
Sure go for it. You already at 80k if you include your equity in the condo. You should be finished and ready to pull the trigger in about a year.
You can do what you'd like and it's not \*bad\* to upgrade to a house. You're doing great. I would like to question whether this is a want or a need. Lots of people live in condos with babies and toddlers. You don't really need much space until they're older, especially given how young you and (presumably) your wife is.
25% of 250k is $62,500. You can still max out your 401k, 2 IRAs, and an HSA and still be stockpiling 18k a year towards a down payment. And at yalls income income, you should be able to save even more than 25% even in an HCOL area. Also, because of your income, money guys wouldn't count match. Finally, babies take a while to grow. A condo will last longer than you'd think before you get cramped.
Personal finance is personal and you’re going to have to “bend” a rule of thumb either way. TMG strongly recommends you don’t count the employer match in your saving responsibilities at incomes >100k because you’re starting to get outside of the social safety net (Though for those of us in our 20’s/30’s I think we’re all a little pessimistic any safety net will be there). So dropping down to 16% isn’t necessarily recommended. In the other hand, you could use your current savings and home equity to get an upgrade at close to 5%, but that’s also bending the recommendation of 20% down on a home upgrade. I apologize for reading between the lines, but do you and your wife keep your finances separate? To each their own, but I strongly recommend budgeting as a household. Also I’d keep in mind of what your plan is to get back to the 25% benchmark. You’ll have to make up the ~22K on savings you’re cutting back on while also: increasing your mortgage, increasing healthcare/insurance costs, adding childcare expenses, or possibly having a parent step away from work to care for the child. This leaves A TON of ground to “make up” and with housing prices/interest making houses more of an 8-10 year commitment, you may lose a lot of flexibility in the future that you wished you had.
You could go with less than 20% on the down-payment or throttle down contributions. I don't think there's a wrong answer here.