Did They Bite Off Too Much? New Homeowners With $560K Mortgage And $4K Monthly Bill Are Down To $5k In Cash

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A mates successful their precocious 20s is closing connected a Maryland townhome with a $560,000 owe and lone $5,000 successful cash. The archetypal poster wrote connected the r/MiddleClassFinance subreddit that their $4,038 monthly outgo felt overwhelming adjacent with a combined $146,000 income and minimal debt.

OP wrote that they enactment 20% down and utilized astir each their savings, leaving $5,000 disposable arsenic they instrumentality connected the mortgage, insurance, taxes, and HOA fees. According to the post, their take-home wage is $8,100 each month, and their lone debts are a $90 pupil indebtedness and a $220 car payment. OP wrote that these costs present instrumentality fractional their nett income and permission their remaining fund tight.

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The station said the 1,800 quadrate feet townhome is adjacent a metro halt and comes with multiyear warranties. OP wrote that akin homes successful the aforesaid improvement database for up to $1.2 million, which made their $700,000 acquisition consciousness competitive. They added that their escrow relationship already reflects updated taxation estimates to assistance forestall increases later.

OP wrote that their semipermanent program depends connected the woman completing her PhD, which is expected to rise her income by astatine slightest $50,000.

They wrote that this alteration would easiness monthly unit and enactment their determination to hold respective years earlier having children. The station besides said their leader contributes 21% to their status account, which they spot arsenic an exigency enactment if needed.

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After regular spending, OP wrote that astir $1,000 remains each month. They said unexpected repairs are the biggest hazard due to the fact that aboriginal costs could strain their constricted cash. OP added that they could trust connected nationalist transit if their car failed since the determination gives them casual entree to a metro station.

One commenter wrote, "Honestly, you are close to beryllium nervous. Your monthly outgo unsocial is fractional of your instrumentality home. That doesn't see utilities, repair, and furnishing. That's gonna beryllium truly choky for the 1st 5 years."

"It's excessively precocious to deliberation if this is simply a mistake, astatine that income level it is. If her income volition spell up by 50k, past that volition lighten the load. You'll person to beryllium blimpish with your spending until this happens,"  different Redditor added.