# House Hunting and Mortgage Payment



## david_ (Aug 22, 2019)

Anyone else trying to make a move? I live in North DFW and have been in my 3/2 home for 8 years. Now with 2 kids and working from home, my wife and I are trying to get a couple extra rooms and bigger yard, limiting my search to 0.75 acre+ in the same general area (schools). We have 1/3 acre now.

In 3 months, we've looked at 5 or 6 houses and put in offers on two (no contingency). Our last offer was $98k over asking, and we didn't get the house. The last couple houses have sold for $100k and $125k over asking. It's a ton of fun. :shock:

I'm also curious.. how *you *determine a comfortable mortgage amount? For easy math, if your take home pay was $10k per month, how much would you put towards your total home payment? I know Ramsey would say 25% on a 15 yr, which is very conservative and not going to happen in this market.


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## bernstem (Jan 16, 2018)

Housing markets are not acting normally at the moment. I have even started seeing discussions of a decline in house values. This seems to be based on rising interest rates and some bubble-like behavior in the market. I don't have any way to know how valid the arguments are.

As for comfort with payment level, that depends a great deal on what the rest of your finances are like. I think 25% is about as high as I would be comfortable going, and only if you see your income rising going forward or your job is stable, but that is just me.


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## pennstater2005 (Jul 17, 2017)

Yeah rough time to buy a home or car. We're currently looking for the latter.

My deciding factor was mostly based on being able to afford on one income if needed (wife works on an as needed basis) and also a possible unexpected reduced income. I want little to no stress in regard to mortgage payments.

We could've afforded decidedly more home but ultimately opted for zero stress level.

On a side note do occasionally wish for a slightly larger living room but it is a 3 bed 2 bath cape so most likely won't regret once (if) kids are gone (ever leave).


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## kman6234 (Jul 29, 2021)

I feel for everyone trying to get a home nowadays. Mortgage rates have really jumped in the past month and that could have some impact on prices, but overall it seems like in most areas the limited supply will prevent any huge price declines.

As for how much house payment someone could afford, I think the blanket % of income rules of thumb aren't very helpful. Everyone's situation is different. For example, are you a person that likes to drive nicer / newer cars? Have a large balance of student loan? Etc. then the fixed amount of expenses will limit you to a lower reasonable housing payment. The lower your fixed living expenses are the more you can afford to pay for housing. Other things to think about are how much you will be able to save for retirement, kids college, how much is your down payment and how stable your income is and what are the chances your income will rise in the future.


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## CenlaLowell (Apr 21, 2017)

Im not paying over asking for anything. I would want this out because prices will not stay like this.


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## TulsaFan (May 1, 2017)

david_ said:


> Anyone else trying to make a move? I live in North DFW and have been in my 3/2 home for 8 years. Now with 2 kids and working from home, my wife and I are trying to get a couple extra rooms and bigger yard, limiting my search to 0.75 acre+ in the same general area (schools). We have 1/3 acre now.
> 
> In 3 months, we've looked at 5 or 6 houses and put in offers on two (no contingency). Our last offer was $98k over asking, and we didn't get the house. The last couple houses have sold for $100k and $125k over asking. It's a ton of fun. :shock:
> 
> I'm also curious.. how *you *determine a comfortable mortgage amount? For easy math, if your take home pay was $10k per month, how much would you put towards your total home payment? I know Ramsey would say 25% on a 15 yr, which is very conservative and not going to happen in this market.


What's the average price per sq ft? I had a builder friend tell me the DFW area was close to $300.


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## daniel3507 (Jul 31, 2018)

We're looking at building here. There just isn't much inventory in our price range and the homes that are out there are going super quickly with all kinds of crazy offers.

As far as mortgages, I don't think I will do a 15 year. I think having a mortgage payment like that would stress me out too much.


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## david_ (Aug 22, 2019)

Houses we're looking at are in the $215-250/sqft range on an acre. Built in 80s/90s. We paid over asking for our house 8 years ago, but that was only $106/sqft.

Unfortunately, I don't think rates will impact prices too much with so many cash buyers out there and it's going to take builders some time to catch up. Of course predicting the economy is basically impossible, so who knows.


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