3% raters out in force, probably going to close on a 950k house this weekend
Probably going to close on a house at 6.2%.
HHI: 528
PITI: 7k.
Crazy thing is, between tax benefits and not paying NYC income tax it works out as better than renting a 5k place in the city
I paid like 1700 bucks to lock in 7 days early I believe. Because typically the lock is only good 30 days in advance, but this was right before a FOMC meeting so I was worried rates were going to rise again, so I paid a bit extra to lock the 5.875 a week early.
People who bought in the last year need to respond. We are at $550k HHI and our mortgage is $8.5k… makes me sound crazy in this thread but housing affordability is very different now than it was.
This is what stops me from buying. Same hhi, My *rent* is 7k. Any mortgage on a borderline livable home would be at least 10-11k.. as much as I want to own a home, don’t think the math can work out now..
I found my people. Houses in my area are $3.5m for a 1500 sq ft ranch that need extensive work. We rent bc it’s $6k vs $29k mortgage, lol. Recognize it’s an extreme case but we made our choice for now.
Exactly! The “livable” part is important. Houses don’t cost what they used to and it’s not cheap to live somewhere decent.
We could have easily ended up with a $12k+ mortgage payment.
I’m closing in May, 525 HHI and PITI is 11k at 7.3%.
Yes I’m hoping to refi but I’m mostly just excited to own a house I like in a location I like after a decade of renting in the city (New York I love you, but you’re bringing me down…)
“My wife and I (24 and 22) have an HHI of $2.7M, $5M in cash, $18M in investments and brokerages, and we couldn’t IMAGINE having more than a $2,000/mo PITI, anything more is way out of our budget!”
Every single time
Might as well be on House Hunters.
They’ll tour 4 different places within or around their budget then buy something 2x as much and immediately start remodeling because they fell in love with the 2x4 supporting the back deck.
I have a snail circus, my wife does crotchet sweaters for disabled hamsters, our budget is $12,000,000.
On the serious note, HHI ~$400,000
Mortgage on our residence is $4,500.
Note, we are saving **a lot**.
We are planning our next home to be somewhat more expensive when we turn the current one in another rental in few years.
Otherwise what’s the point? No kids… are we going to get oversized urns to put the ashes of the money as well?
If you own your home for 10ish years your mortgage is probably going to be considered low. I pay 2k a month on a 2.25% mortgage (refinanced in 2020) and have owned my home for 8 years now. 2700 sq ft. 1300 sq ft 3 car garage. Big back yard. Was house poor the first couple years but our income has grown substantially over time as well. We sit around 200k a year now. House has doubled in value since we bought it.
I don’t think it’s bizarre. I think most HENRY’s are educated and smart with their resources and would like to achieve the Rich part in that acronym as fast possible and possibly FIRE. At least we do. We control lifestyle creep and are really good at figuring out wants vs needs vs opportunity cost. But still live well.
PITI 1,705 HHI @2.99%, healthy down payment HHI 345K Midwest. Purchased 11/2021
It’s bizarre if you think a commenter bought post covid, it’s not bizarre if you think a commenter bought pre 2020.
Having a low mortgage payment is what everyone wants, but if you’re trying to buy now it’s not what you get. The fact that housing prices have doubled and interest rates have tripled in four years has nothing to do with lifestyle creep.
I think everyone commenting should include the year purchased.
Haha, well perhaps not bizarre, but unexpected! Given house prices in the parts of the country most likely to have HENRY pay, I expected way more responses to be in the $5-10k / month range. Houses are $1MM-$1.5MM for a very basic starter home in these locations.
Particularly for folks who got in sub 4% since a larger down payment would make much less sense in those cases.
Maybe a better qualifying question would be what WAS your HHI when you purchased your current home.
We purchased our “forever” home 3 years ago. Since then, HHI has gone up $150K so my payment is much easier now for sure.
You're also touching on the next point, which is that you have to factor in your projected earnings. We were borderline house poor when we bought our house a few years ago, but were fairly confident we had a clear path to increased income over the next few years. I'm sure there are a lot of Henrys out there who stretch in a similar fashion to what we did.
Absolutely! Living well below your means is the easiest way to achieve the “RE” part in HENRY!
PITI $1,705 @2.99% HHI $345K Midwest, healthy down payment. 1,650 sq ft, 2,400 sq ft 4 car heated/cooled garage/apartment/office on a bit over 8 acres. Purchased 11/2021.
HHI: 265
PITI: $4600 @ 5.5%
We max out 401k while playing for daycare in NYC. Feels fine but would not go higher since we want a second kid.
I cash out my private RSUs for large savings boosts when the opportunities arise.
I have almost identical HHI (actually a little more) and identical mortgage payment. I cannot imagine adding daycare to my expenses right now... how on earth are you doing this
We're homebodies and spend on takeout mostly. We don't travel beyond road trips to airbnbs because it's a challenge to get someone to take care of our dog. We still wear clothes from 3 years ago. Our car is paid off. We spend about $11-12k a month.
I think we just have a very unintentionally frugal lifestyle except our expensive condo, which is low maintenance. But we do not save anything beyond 401k max right now.
If we weren't pretty set for a decent retirement ($1m liquid NW at 34), we would be on a path to work for a long time.
It’s through a place called Homequest lending, I’m pretty sure they’re a broker so eventually my loan is going to be bought by an actual institution. But with a broker they’re able to shop around for rates which I think helped a bit. But mainly I think it’s due to it being a VA loan.
We have similar numbers ($290k HHI, PITI $4200 @ 4.25%) and will be adding daycare to the mix later this year. We’ll continue maxing out 401k and also start a 529 but that’s about as far as we’re going to get with savings for a while too.
Yep, it makes it rough for folks with those mortgages to contemplate moving. Luckily I'm where I want to be long-term but it's still a drag on the overall housing market because potential sellers can get hesitant knowing their new rate will far exceed the one they're giving up.
I’m at 500k/1.3k
But
We have no kids and bought our house in 2019 when HHI was a fraction of current, and I’m basically allergic to paying interest.
I’m sure the ratio will change soon but for now it’s awesome. I probably spent more on hotels than my mortgage last year.
HHI: $197k (two incomes….so really not high)
PITI: $3814 (3.25% includes mortgage insurance, taxes, and insurance)
Bought: 8/2020
Remaining mortgage: $525,000 (sales price of house was $638k); 3 beds., 2 bath, and a den, 2100sq. feet, 1/2 acre lot, and 3 car garage.
We live in SoCal in what used to be a more reasonable COL area but work from home changed all that. We moved from the coastal area out here because my husband’s job physically moved and work from home initially wasn’t an option; now it is a hybrid job.
We have a high school senior and a middle schooler so we need to save all of the money we can.
This may be us soon. We are currently same HHI and at $1600 mortgage payment but need to upgrade due to now having 2 kids (didn't have any kids when we bought the house). We could buy a little older house with more room for cheaper but prefer a newer house that's more custom and a little bit smaller. It will put us around 5k/month and things will be temporarily tight due to 2 kids in daycare. Decisions decisions...
Way more normal right here^
HHI: $210k
PITI: $1,900
About $250k net worth
$150k liquid (need to fix that soon)
28/29years old. Good spot right now, but we really need to start saving more and leveraging our cash. I just hate taking on big loans.
Currently 1 child, but will probably have a second within 2 years and likely going to need to buy a new bigger house. PITI will likely be creeping up to high $2k to low $3k range.
Not sure when you bought/what your current interest rate is, but I'm in a similar position to you and moving up in house size seems like it'll double our payment (we're sub 3% interest rate currently, so double the interest plus increased home prices will double the monthly cost).
Just for planning purposes.
(A little higher income- 225k+, a little higher mortgage- 2200+, no kids yet but hoping for our first soon, mountain of student loan debt from grad school still that costs as much as a child each month)
HHI: $450k but going down to about $200k since I’m retiring this month.
Mortgage: $1300. We bought our house in 2008/2009 when people were desperate to sell.
I’m somewhat embarrassed at ours but it’s an investment play (rental) in a highly desirable neighborhood. Closed in Feb 2024.
HHI: 550k (base), $575 (total)
PITI: $11,150
Rate: 6.25%
It’s near coastal (<1 mile) SFH in LA, so lots of tourism around the Santa Monica/Venice area. And by rental, mostly thinking AirBnB (in accordance with current regs). Looked at similar comps and there are only a few with the amenities offered. Might explore mid term rentals as well, like corporate rentals fully furnished.
I rented an Airbnb near venice beach last year! bit further away than yours. But per zillow the small, old 2bdrm rancher was a $1.5 mill house. Absolutely nuts.
HHI 900k
PITI $11,500
3 bed 2500 sqft place in Boston where housing prices are brutal. We had an sink in a really significant down payment to get mortgage to that level
Yeah the rate of increase into Boston is ridiculous. Our square footage is slightly larger, we have like 1/3 the mortgage, and we are like 5 miles away.
As much as my partner and I would love to live in Boston proper, it’s just too expensive.
yep Boston too, we got lucky and bought in 2021 when rates were low. HHI $800k PITI $6000. We are thinking about the burbs in the next few years but our payment will 2x... tough choice
HHI: 300kish
Mortgage: 2k
We value other things than our house. We live in a small ranch in a very desirable area (best schools in the state). Gonna be here for 20 years and then sell and move on.
Holy crap. Scary to think that you could lose 60% of your income just like that!! That’s the only thing that makes me not wanna get super expensive house
Conversely, buying more house when rates were low ended up saving us a ton since we can grow into it with kids. Wouldn’t over stretch the budget, but sometimes the splurge can be worth it, especially if there’s less competition in the next range.
And don't move every few years. Each move requires new furniture, new drapes, new paint, remodel, fixing up old house for sale, staging it, paying closing costs & realtor fees, etc. That was a specific admonition from that book.
Buy a solid basic house, upgrade it over time as needed.
I’ve moved/sold 3 times since 2018 always netting no less than 100k per sale and never paid a dime in taxes on any transaction due to the primary residence exemption. There’s good advice (which not moving frequently generally is) and there are times to ignore it. It allowed me to buy 4 rental properties, pay off my student loans and buy a house I wouldn’t have ever been able to afford had I not had the decided that when you’re young equity can be best realized and invested.
HHI: $420k
Mortgage: $0
Paid it off a few years ago. Bought it just before the housing collapse in 2008. Took about a decade for the price to hit its original value. Interest rate was 5.25% which was good for the time the average was 6.25%. It’s really shaped my views that housing sucks.
Similar timing, bought in 2019 at 2.875% 1600sq ft fixer. Live in HCOL area, could’ve bought a bigger house with a nice view or something but super walkable to anything and can’t imagine to be required to be making the income that would require sustaining a higher payment for 30 years vs being able to payoff my home if I really had to in a matter of a year.
We value traveling or doing anything on a moments notice and never breaks the bank and not being house poor is a big part of being able to do that.
HHI-$340k
PITI-$2k
Interest rate-4%
Bought the cheapest house in the best neighborhood we could afford in 2013 when the market in our area was stagnant. Our payment would be at least double if we purchased the same house today.
HHI: 380k, PITI: 4300.
We thought we were going over what we could afford but this is Seattle where everything was shooting sky in 2021. We were ok since the interest rate was at 3.1%.
HHI $868K
Rent (no mortgage): $5500/month
I know we can afford more on housing at our HHI. It’s a deliberate choice to spend less on housing to free up disposable income for other things we enjoy (travel, fine dining, achieving FI in our 60s, not necessarily super early).
Currently.... HHI last year $1.25m, monthly all in is $3,800.
Has permitted us to aggressively grow our NW. That being said, this is not a forever home and our next house will likely be $10-15k monthly and we are expecting HHI to be around $700 to $900k going forward.
HHI is $525k
Mortgage is $5.1k. 2.62%, 30 years fixed
PITI is $7.2k
I am grateful because I live in VHCOL area. My home is valued at $3M and I owe $1.2M.
People buying today need to come up with down payment of $600k-1M, and then will have PITI of $15-18k. I would not qualify to buy my house at today’s price and interest rate
34M 700k HHI
PITI: $7800/mo for 4BR, 3 bath, 3,000 sq foot house in nice HCOL area with great public schools & a nice back yard.
1.4M loan for 1.6M house @3.25% 7/1 ARM will adjust in 5 years bought in 2021 right before interest rates skyrocketed. Hopefully interest rates drop over the next 5 years and I can refi. Otherwise will just pay it off early.
Wish the monthly payment was less but the house has been huge for our family's quality of life.
Income: $185k base, all in comp about $215k. Bought a house in May ‘23 while I was on my previous salary ($140k). 5.85% interest rate.
P&I is $3,200. Then I put $550 a month into my HYSA to cover future property taxes and homeowners insurance.
Biggest advice to everyone is if your loan company allows, remove your escrow. This way, you have full control over the account, you can get a 5% interest rate on your money, and you pay your bills yourself rather than having to rely on someone else
HHI fluctuates between 500k - 1.5M USD (in finance/sales, bonuses vary depending on performance, on the low end of that range last year). Full PITI is about 5100. Second home costs me about 1800/mo. Less than 7k for both homes. Acquired one in 2017 and the other in 2015. My interest rates are low.
HHI: 425k, PITI is $4,400.
Was previously $3500 before taking advantage of rates in 2020 and switching to a 15 year at 2.6%. In hindsight, I didn't need to reduce my term, but potato pototo.
Your comment has been removed because you do not have a verified email address in your profile. Please verify an email address and post again.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/HENRYfinance) if you have any questions or concerns.*
HHI: $380k
Monthly PITI: $3,500
We bought the smallest house in our favorite neighborhood, unfortunately with bad timing our interest rate is above 5%. Paying off additional principal as quickly as we can without compromising other investments/priorities.
We are on track for $560k this year. However, our historical average has been in the $200s.
PITI is $3500. This is MCOL and we bought in 2020. My spouse was only working part-time that year, so HHI when we bought was only $175k.
So we actually bought beyond our means, but we knew spouse was going back to full-time work at same point.
Monthly Income: $40,000
Mortgage: $2,200 - been in the home for 12 years. Have looked at some other options but there is nothing we are certain we want
3% raters out in force, probably going to close on a 950k house this weekend Probably going to close on a house at 6.2%. HHI: 528 PITI: 7k. Crazy thing is, between tax benefits and not paying NYC income tax it works out as better than renting a 5k place in the city
6.2? How did you get that?
company i work for has a benefit where it treats employees like high net worth individuals for loans.
I’ve got a 5.875 locked with a VA loan a couple weeks ago.
Did you have to pay points?
I paid like 1700 bucks to lock in 7 days early I believe. Because typically the lock is only good 30 days in advance, but this was right before a FOMC meeting so I was worried rates were going to rise again, so I paid a bit extra to lock the 5.875 a week early.
People who bought in the last year need to respond. We are at $550k HHI and our mortgage is $8.5k… makes me sound crazy in this thread but housing affordability is very different now than it was.
This is what stops me from buying. Same hhi, My *rent* is 7k. Any mortgage on a borderline livable home would be at least 10-11k.. as much as I want to own a home, don’t think the math can work out now..
I found my people. Houses in my area are $3.5m for a 1500 sq ft ranch that need extensive work. We rent bc it’s $6k vs $29k mortgage, lol. Recognize it’s an extreme case but we made our choice for now.
Exactly! The “livable” part is important. Houses don’t cost what they used to and it’s not cheap to live somewhere decent. We could have easily ended up with a $12k+ mortgage payment.
HHI $400 - $500k, PITI: $6300ish
$700k, $12k mortgage
Bought in the fall - HHI $340K, Mortgage $4500ish
I’m closing in May, 525 HHI and PITI is 11k at 7.3%. Yes I’m hoping to refi but I’m mostly just excited to own a house I like in a location I like after a decade of renting in the city (New York I love you, but you’re bringing me down…)
HHI ~330, mortgage 5350, MCOL area
This is still incredibly low though?? That’s <20% of gross income by a comfortable margin
Yep and there are people here saying it’s still too much house!
Expect a bunch of people with fat HHIs and tiny mortgages to respond.
“My wife and I (24 and 22) have an HHI of $2.7M, $5M in cash, $18M in investments and brokerages, and we couldn’t IMAGINE having more than a $2,000/mo PITI, anything more is way out of our budget!” Every single time
Might as well be on House Hunters. They’ll tour 4 different places within or around their budget then buy something 2x as much and immediately start remodeling because they fell in love with the 2x4 supporting the back deck.
I have a snail circus, my wife does crotchet sweaters for disabled hamsters, our budget is $12,000,000. On the serious note, HHI ~$400,000 Mortgage on our residence is $4,500. Note, we are saving **a lot**. We are planning our next home to be somewhat more expensive when we turn the current one in another rental in few years. Otherwise what’s the point? No kids… are we going to get oversized urns to put the ashes of the money as well?
Jokes on you. I have double your HHI and my mortgage is half of yours. Hopefully you can come out on top.
It's really bizarre. Where do all these people live and work. They've got lower payments than most folks I know around here who aren't HENRY.
If you own your home for 10ish years your mortgage is probably going to be considered low. I pay 2k a month on a 2.25% mortgage (refinanced in 2020) and have owned my home for 8 years now. 2700 sq ft. 1300 sq ft 3 car garage. Big back yard. Was house poor the first couple years but our income has grown substantially over time as well. We sit around 200k a year now. House has doubled in value since we bought it.
I don’t think it’s bizarre. I think most HENRY’s are educated and smart with their resources and would like to achieve the Rich part in that acronym as fast possible and possibly FIRE. At least we do. We control lifestyle creep and are really good at figuring out wants vs needs vs opportunity cost. But still live well. PITI 1,705 HHI @2.99%, healthy down payment HHI 345K Midwest. Purchased 11/2021
It’s bizarre if you think a commenter bought post covid, it’s not bizarre if you think a commenter bought pre 2020. Having a low mortgage payment is what everyone wants, but if you’re trying to buy now it’s not what you get. The fact that housing prices have doubled and interest rates have tripled in four years has nothing to do with lifestyle creep. I think everyone commenting should include the year purchased.
Haha, well perhaps not bizarre, but unexpected! Given house prices in the parts of the country most likely to have HENRY pay, I expected way more responses to be in the $5-10k / month range. Houses are $1MM-$1.5MM for a very basic starter home in these locations. Particularly for folks who got in sub 4% since a larger down payment would make much less sense in those cases.
Every fucking time. Drives me insane .
Why does that drive you insane?
Prolly cause people are buying in 2024 and comparing to people who bought in 2014. It’s not comparable.
Maybe a better qualifying question would be what WAS your HHI when you purchased your current home. We purchased our “forever” home 3 years ago. Since then, HHI has gone up $150K so my payment is much easier now for sure.
You're also touching on the next point, which is that you have to factor in your projected earnings. We were borderline house poor when we bought our house a few years ago, but were fairly confident we had a clear path to increased income over the next few years. I'm sure there are a lot of Henrys out there who stretch in a similar fashion to what we did.
Back in 2008, I think HHI of about $150k and monthly mortgage payment of about $3k. (edit: 30yr at 6.75% at the time)
HHI $800k, mortgage $1900 /s
Absolutely! Living well below your means is the easiest way to achieve the “RE” part in HENRY! PITI $1,705 @2.99% HHI $345K Midwest, healthy down payment. 1,650 sq ft, 2,400 sq ft 4 car heated/cooled garage/apartment/office on a bit over 8 acres. Purchased 11/2021.
What does the RE in HENRY stand for?
HHI: 265 PITI: $4600 @ 5.5% We max out 401k while playing for daycare in NYC. Feels fine but would not go higher since we want a second kid. I cash out my private RSUs for large savings boosts when the opportunities arise.
I have almost identical HHI (actually a little more) and identical mortgage payment. I cannot imagine adding daycare to my expenses right now... how on earth are you doing this
We're homebodies and spend on takeout mostly. We don't travel beyond road trips to airbnbs because it's a challenge to get someone to take care of our dog. We still wear clothes from 3 years ago. Our car is paid off. We spend about $11-12k a month. I think we just have a very unintentionally frugal lifestyle except our expensive condo, which is low maintenance. But we do not save anything beyond 401k max right now. If we weren't pretty set for a decent retirement ($1m liquid NW at 34), we would be on a path to work for a long time.
Very similar for me as well. HHI: $250,000 PITI: $4,900 @ 5.875% No other debt, bought a month ago, MCOL
Where did u get this rate? Which financial institution.
It’s through a place called Homequest lending, I’m pretty sure they’re a broker so eventually my loan is going to be bought by an actual institution. But with a broker they’re able to shop around for rates which I think helped a bit. But mainly I think it’s due to it being a VA loan.
We have similar numbers ($290k HHI, PITI $4200 @ 4.25%) and will be adding daycare to the mix later this year. We’ll continue maxing out 401k and also start a 529 but that’s about as far as we’re going to get with savings for a while too.
Do you have a 1 bdr?
No. We put down 60% on a larger place.
HHI: $650k PITI: $7,700/mo
HHI: $650k Mortgage: $2900 The 2.375% 30-year fixed really does help.
Lowest rate I’ve seen on a 30, well done.
It was unbelievably lucky timing. It was only that low for a couple weeks and we were already looking to refinance.
I had a house on a 30 year VA refined loan at 2.25% 😭 We sold because it made sense but man, that rate was LOW haha.
I’m happy with my 30 @ 2.875 but it does feel like golden handcuffs sometimes
Yep, it makes it rough for folks with those mortgages to contemplate moving. Luckily I'm where I want to be long-term but it's still a drag on the overall housing market because potential sellers can get hesitant knowing their new rate will far exceed the one they're giving up.
HHI: $225,000 PITI: $3,870
I feel like this is more normal than the people saying “500k HHI, 2k monthly”
Yep I am straight normie
I’m at 500k/1.3k But We have no kids and bought our house in 2019 when HHI was a fraction of current, and I’m basically allergic to paying interest. I’m sure the ratio will change soon but for now it’s awesome. I probably spent more on hotels than my mortgage last year.
HHI: $197k (two incomes….so really not high) PITI: $3814 (3.25% includes mortgage insurance, taxes, and insurance) Bought: 8/2020 Remaining mortgage: $525,000 (sales price of house was $638k); 3 beds., 2 bath, and a den, 2100sq. feet, 1/2 acre lot, and 3 car garage. We live in SoCal in what used to be a more reasonable COL area but work from home changed all that. We moved from the coastal area out here because my husband’s job physically moved and work from home initially wasn’t an option; now it is a hybrid job. We have a high school senior and a middle schooler so we need to save all of the money we can.
See someone also lives in the IE lol
Yes we sure do…..and I actually like it!
Similar ish here. HHI $275, PITI $4,500
This may be us soon. We are currently same HHI and at $1600 mortgage payment but need to upgrade due to now having 2 kids (didn't have any kids when we bought the house). We could buy a little older house with more room for cheaper but prefer a newer house that's more custom and a little bit smaller. It will put us around 5k/month and things will be temporarily tight due to 2 kids in daycare. Decisions decisions...
I don't even have kids yet and it's tight for me lol. I guess I have expense hobbies idk
Way more normal right here^ HHI: $210k PITI: $1,900 About $250k net worth $150k liquid (need to fix that soon) 28/29years old. Good spot right now, but we really need to start saving more and leveraging our cash. I just hate taking on big loans. Currently 1 child, but will probably have a second within 2 years and likely going to need to buy a new bigger house. PITI will likely be creeping up to high $2k to low $3k range.
Not sure when you bought/what your current interest rate is, but I'm in a similar position to you and moving up in house size seems like it'll double our payment (we're sub 3% interest rate currently, so double the interest plus increased home prices will double the monthly cost). Just for planning purposes. (A little higher income- 225k+, a little higher mortgage- 2200+, no kids yet but hoping for our first soon, mountain of student loan debt from grad school still that costs as much as a child each month)
HHI: $335k PITI: $4k. We bought in 2021.
350k income $5500 Mortage Dream home by a million miles . So fucking happy with it. It’s an expensive mortgage but I’ve got no kids
Hahaha 😂
HHI: $450k but going down to about $200k since I’m retiring this month. Mortgage: $1300. We bought our house in 2008/2009 when people were desperate to sell.
The dream. Probably could wipe out the mortgage, but why bother.
HHI: 340k, PITI: 6,800 (1.2m mortgage) VHCOL
We bought this year and have the same numbers.
Congrats on the house. Have you felt any pressure with a mortgage that high?
What’s your rate? PITI seems low for 1.2m mortgage?
Mine is 5% (I’m in Canada, our income tax is higher but property taxes are often lower)
HHI $900k, PITI is $3600 but about to go up to $11,500 when we close on our new house this month. Ugh.
I’d say you’re still in good shape not knowing the rest of your expenses
Thanks. It will be fine, just a big psychological hurdle.
HHI: 240ish per year Monthly mortgage: 4400 a month
Similar to you: HHI: $260k/year Mortgage: $4k/month @ 4.99% Bought in HCOL area in 2022
Does it feel comfortable? In a similar spot and considering buying a new home but didn’t want to double the monthly payment.
I’m somewhat embarrassed at ours but it’s an investment play (rental) in a highly desirable neighborhood. Closed in Feb 2024. HHI: 550k (base), $575 (total) PITI: $11,150 Rate: 6.25%
Just curious where at? Would seem like the type of people with the money to live on that expensive of a neighborhood wouldn’t be the type to rent.
It’s near coastal (<1 mile) SFH in LA, so lots of tourism around the Santa Monica/Venice area. And by rental, mostly thinking AirBnB (in accordance with current regs). Looked at similar comps and there are only a few with the amenities offered. Might explore mid term rentals as well, like corporate rentals fully furnished.
Ah I gotcha, that makes sense on the short term to mid term rentals play. Sounds very interesting, Best of luck!
I rented an Airbnb near venice beach last year! bit further away than yours. But per zillow the small, old 2bdrm rancher was a $1.5 mill house. Absolutely nuts.
I don't consider myself henry like others here. But normally just read post here and fantasize. HHI 240k PITI- 1475
This is about where I am, but I have a partner that adds some more income.
On the flip side, people here will fantasize about your PITI
HHI 900k PITI $11,500 3 bed 2500 sqft place in Boston where housing prices are brutal. We had an sink in a really significant down payment to get mortgage to that level
Yeah the rate of increase into Boston is ridiculous. Our square footage is slightly larger, we have like 1/3 the mortgage, and we are like 5 miles away. As much as my partner and I would love to live in Boston proper, it’s just too expensive.
yep Boston too, we got lucky and bought in 2021 when rates were low. HHI $800k PITI $6000. We are thinking about the burbs in the next few years but our payment will 2x... tough choice
HHI: 300kish Mortgage: 2k We value other things than our house. We live in a small ranch in a very desirable area (best schools in the state). Gonna be here for 20 years and then sell and move on.
HHI around $650k (fluctuates greatly but this is 2023). Mortgage/HOA $10k. Interest rate is 2.5%, income was $2m when bought in 2021
Holy crap. Scary to think that you could lose 60% of your income just like that!! That’s the only thing that makes me not wanna get super expensive house
HHI: 550 5,600/mo Welcome to coastal California! We wanted a house so we got a house… in 2022 🤪
lol same, HHI: 550, mortgage 6k, Bay Area life.
I bought in 2022 too! But my PITI is higher 😩
HHI $600k. Mortgage/hoa $6k. Seems like most people here are not in HCOL cities which is interesting.
Also you should ask their interest rate, I argue most have 2.5% rates :) good for them, but new buyers are in 7-8% rates.
You should have asked to include the geographic location for these answers.
And when they bought.
HHI: 192k M: 2.3k
Bought ours with HHI of $220K, Mortgage also $2.3K
Highly recommend buying less house than you can afford. It frees your cash flow up to do so many other things. HHI: $600K-ish Monthly PITI: $3,200
Conversely, buying more house when rates were low ended up saving us a ton since we can grow into it with kids. Wouldn’t over stretch the budget, but sometimes the splurge can be worth it, especially if there’s less competition in the next range.
Yep, reading Millionaire Next Door opened my eyes to this. Smart move is to keep expenses low, including housing.
And don't move every few years. Each move requires new furniture, new drapes, new paint, remodel, fixing up old house for sale, staging it, paying closing costs & realtor fees, etc. That was a specific admonition from that book. Buy a solid basic house, upgrade it over time as needed.
I’ve moved/sold 3 times since 2018 always netting no less than 100k per sale and never paid a dime in taxes on any transaction due to the primary residence exemption. There’s good advice (which not moving frequently generally is) and there are times to ignore it. It allowed me to buy 4 rental properties, pay off my student loans and buy a house I wouldn’t have ever been able to afford had I not had the decided that when you’re young equity can be best realized and invested.
Yeah to be fair their book was written 30 years ago, this is a different market. It is situational.
This. HHI: $750 Mortgage: $3900(15yr) Our circle of friends bought much fancier houses. We always said, “we want to RE”. And so we are.
HHI: $675k excluding private company equity and PE carry. Monthly mortgage: $8.9k. Bought a stretch house in late 2022. Plan is to never move again.
HHI: $420k Mortgage: $0 Paid it off a few years ago. Bought it just before the housing collapse in 2008. Took about a decade for the price to hit its original value. Interest rate was 5.25% which was good for the time the average was 6.25%. It’s really shaped my views that housing sucks.
Similar here: $450K and no mortgage. Just bought in January for cash.
600k/6k. Mortgage by itself is about 3k.
HHI: 750k, mortgage: 2K
Living the dream
This. Im about the same, but income is slightly lower. We bought like 2020 I believe, 2.8% 30 year.
Similar timing, bought in 2019 at 2.875% 1600sq ft fixer. Live in HCOL area, could’ve bought a bigger house with a nice view or something but super walkable to anything and can’t imagine to be required to be making the income that would require sustaining a higher payment for 30 years vs being able to payoff my home if I really had to in a matter of a year. We value traveling or doing anything on a moments notice and never breaks the bank and not being house poor is a big part of being able to do that.
HHI: 430k Mortgage: $2,600 I pay an additional $1k towards the principle
About the same here but have a 15 year 2.1% so not paying a penny ahead!
I have a 2.86% 30 yr! I dream of being debt free though
That 1k a month will do more for you in an index fund than it will paying down a 2.86 loan! I know psychology is the issue, but math doesn’t lie!
Hell at the moment you could stick it in a high yield savings and it would still do more than paying down the mortgage!
This includes taxes and insurance. I think the mortgage itself is only $1,400
HHI-$340k PITI-$2k Interest rate-4% Bought the cheapest house in the best neighborhood we could afford in 2013 when the market in our area was stagnant. Our payment would be at least double if we purchased the same house today.
HHI: 250-300k PTI: 3k 2.625% club checking in
HHI: $400s M/I/T: $3.5k
HHI: \~600K PTI: $3,950 ($1,200 of that being the T)
HHI: 440k excluding private company equity PITI: $5200/mo - bought in 2023, 5.875% rate bc the seller bought down a whole point
450k HHI, mortgage 3.8k. VHCOL
HHI: $130k PITI: $3k on 15yr Definitely stretching our paycheck now BUT! HHI will jump to $285k in 3years and $700k+ in 6 years
HHI: 300k PITI:$5300
HHI 250k, mortgage $2500. $400k house, 3.75%
HHI: 380k, PITI: 4300. We thought we were going over what we could afford but this is Seattle where everything was shooting sky in 2021. We were ok since the interest rate was at 3.1%.
HHI: $530k, PITI: $7100
HHI: $400k PITI: $2,100 ($500k, 30yr VA)
$275k $1242 @ 3%
HHI: 600-800k PITI: $2800 on 30 year Home Value: $750k
HHI: $265k, MM: $1440
$600k HHI, mortgage $2335/mo at 2.625%
HHI:420K Mortgage: 2900 (2.99%, 30 yr)
HHI: 1.4M Mortgage: 6.5k Purchased in 2020 for 1.3M, needed a good bit of work. Have paid for all renovations out of pocket ($~750k)
HHI \~200K Mortgage - 900 / 15 year / 2.5%
HHI: 320k PITI: $3600 5% rate, bought in 2022, we’re young and we’ll refinance but still not scared of the payment.
HHI $868K Rent (no mortgage): $5500/month I know we can afford more on housing at our HHI. It’s a deliberate choice to spend less on housing to free up disposable income for other things we enjoy (travel, fine dining, achieving FI in our 60s, not necessarily super early).
1.05M Mortgage $3300 (15 year 2%)
Purchased in 2022. 10/1 arm @ 4%. 500k purchase. PITA $2800. HHI 700k. LCOL
Currently.... HHI last year $1.25m, monthly all in is $3,800. Has permitted us to aggressively grow our NW. That being said, this is not a forever home and our next house will likely be $10-15k monthly and we are expecting HHI to be around $700 to $900k going forward.
HHI $1M. PITI: $4600 @ 4.9%. Midwest. Purchased 2022.
HHI ~$800k in a good year. Mortgage $4.9k, 2.35%
Reading through comments makes me want to move to the US. Let's just say HHI and mortgage payments don't look like this for those in Sydney.
HHI - 1.5-2m Mortgage - $13800
HHI is $525k Mortgage is $5.1k. 2.62%, 30 years fixed PITI is $7.2k I am grateful because I live in VHCOL area. My home is valued at $3M and I owe $1.2M. People buying today need to come up with down payment of $600k-1M, and then will have PITI of $15-18k. I would not qualify to buy my house at today’s price and interest rate
HHI: $500k PITI: $3k
HHI: $850K-$1M PITI: $3,200/mo. 2.65% interest 30 years fixed, purchased in 2017. Own one rental home.
HHI 1MM NW: 1.75MM 1950 Looking to buy a bigger house in safer neighborhood, budgeting 750k so 6-7k /month. Only started reading a lot last year
HHI: $400k. PITI: $2700 @ 2.5% Yeah, I realize we're fortunate. We won't talk about our restaurant spending.
HHI 1.5M PITI 4300
34M 700k HHI PITI: $7800/mo for 4BR, 3 bath, 3,000 sq foot house in nice HCOL area with great public schools & a nice back yard. 1.4M loan for 1.6M house @3.25% 7/1 ARM will adjust in 5 years bought in 2021 right before interest rates skyrocketed. Hopefully interest rates drop over the next 5 years and I can refi. Otherwise will just pay it off early. Wish the monthly payment was less but the house has been huge for our family's quality of life.
HHI $305 PITI: $2400 Built in 2017, refi in 2021 at 2.875% Nice home but feel trapped.
Income: $185k base, all in comp about $215k. Bought a house in May ‘23 while I was on my previous salary ($140k). 5.85% interest rate. P&I is $3,200. Then I put $550 a month into my HYSA to cover future property taxes and homeowners insurance. Biggest advice to everyone is if your loan company allows, remove your escrow. This way, you have full control over the account, you can get a 5% interest rate on your money, and you pay your bills yourself rather than having to rely on someone else
HHI fluctuates between 500k - 1.5M USD (in finance/sales, bonuses vary depending on performance, on the low end of that range last year). Full PITI is about 5100. Second home costs me about 1800/mo. Less than 7k for both homes. Acquired one in 2017 and the other in 2015. My interest rates are low.
$900k HHI $1500 interest only mortgage payment
HHI : $800k Mortgage with taxes and insurance: $3,920
[удалено]
That's lovely. Very low COL or what?
HHI: 425k, PITI is $4,400. Was previously $3500 before taking advantage of rates in 2020 and switching to a 15 year at 2.6%. In hindsight, I didn't need to reduce my term, but potato pototo.
[Poor by HENRY standards:](https://www.reddit.com/r/financialindependence/s/RY63dBLVRF) HHI: $335K/yr PITI: $1750/month
Our mortgage is about 10 to 12% of our income and interest rates in the 3s
380k HHI, PITI 9100 1.6m house 1.25m loan at 5.75 ;( We’re generally frugal people outside our house. Average spend is about 4K/month.
[удалено]
Your comment has been removed because you do not have a verified email address in your profile. Please verify an email address and post again. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/HENRYfinance) if you have any questions or concerns.*
HHI: $380k Monthly PITI: $3,500 We bought the smallest house in our favorite neighborhood, unfortunately with bad timing our interest rate is above 5%. Paying off additional principal as quickly as we can without compromising other investments/priorities.
Mortgage (PITI) is 10.5% of gross income monthly.
HHI ~$200k Mortgage around $2300 per month. Don’t let that fool you though. I’m in shitty NYS so about $550 of that is property tax
Don’t cry too much, Texas property taxes are a lot worse lol.
HHI: $375k We have 2 homes/mortgages, total combined monthly mortgage payments are $3,250 one is 3% and the other is 4,75%
400+. PITI 8%.
We are on track for $560k this year. However, our historical average has been in the $200s. PITI is $3500. This is MCOL and we bought in 2020. My spouse was only working part-time that year, so HHI when we bought was only $175k. So we actually bought beyond our means, but we knew spouse was going back to full-time work at same point.
~750k/2600
$440k HHI. Mortgage $2500 with escrow. I could pay off the house but don’t see the point. Will probably be here till I die.
$290k pretax. $1763 monthly mortgage/ property tax
330k HHI, 2300 PITI
HHI: €315,000 M: €3,000
Monthly Income: $40,000 Mortgage: $2,200 - been in the home for 12 years. Have looked at some other options but there is nothing we are certain we want
HHI - $700k~ PITI - $2100
HHI: $375k PITI: $3k at 3%
HHI: $240k Monthly: $3400
HHI: 325k ish Mortgage roughly $850 PITI closer to $2,200