If total income is $80,000, then is $1,500 mortgage doable?

[tripods68]

Yes, the $140,000 does factor in the loan for the bar exam, review course and housing.

We are estimating about $2000-$2500 a month for student loan payments.

Wow! My mortgage is only $1600.00 a month. You might want to lower your housing cost maybe around $200K instead. Just an idea.

[disneysteve]

We are estimating about $2000-$2500 a month for student loan payments.

That sounds awfully high. $2,500/month would be $140,000 in only 56 months (not accounting for interest). Surely these loans have a much longer repayment schedule than 5 or 6 years. My med school loans had a 25-year repayment schedule. These must be at least 10 or 15 if not 25 like mine.

[ScrimpAndSave]

I'm sure the minimum payment would be less...we are just estimating on the much higher end to be safe.

I know that a $140,000 student loan debt won't be like $50-$75 a month. It's going to be a hefty payment.

[disneysteve]

I'm sure the minimum payment would be less...we are just estimating on the much higher end to be safe.

I know that a $140,000 student loan debt won't be like $50-$75 a month. It's going to be a hefty payment.

You shouldn't have to estimate at all. The loan disclosure statements should spell out the exact payment schedule. Have him pull out all the loan documents and you can tally up the actual minimum payments. Then once you know his actual income, you can decide how much above the minimum you want to pay to retire the debt early while still leaving money for savings, buying a home and other needs.

[jIM_Ohio]

Again- OP is looking for a very specific answer (house payment they can afford in two years), yet is using very general estimates to make decision.

garbage in = garbage out.

OP should concentrate on 3-4 short term goals to make 1 intermediate goal work.

The intermediate goal is getting a house. Don't worry about what you can afford then, just know that it is a goal.

Then work all short term goals to get stars to align and allow the intermediate term goal.

Short term goals:

1) save 20% of paychecks. 10% to retirement and 10% to house fund.
2) keep expenses and debt low. Start repaying the debt now (why wait). Paying this down now saves you money and would allow a larger house payment because debt load would be lower.
3) pay cash for wedding and do not let wedding push debt higher.
4) do everything you can now to maximize fiance's earning power when he passes bar (maybe be flexible and you work 2 jobs now, so he studies and aces bar exam in a year or two).

My advice is specific for specific problems you have mentioned in posts. It does not solve your original question (how much house you can afford in 2 years), but I think we could agree if you did all of the above, your situation would be much better off financially in 2 years.

In addition what you might see is that it makes sense to move somewhere else (where husband gets hired based on earning power comment) and then you see house prices there are different than house prices where you are now.

[ScrimpAndSave]

1) save 20% of paychecks. 10% to retirement and 10% to house fund.

I currently take home $1,156 every two weeks and save $700 of it.

2) keep expenses and debt low. Start repaying the debt now (why wait). Paying this down now saves you money and would allow a larger house payment because debt load would be lower.

I am debt free. Any debt there is - is in his name...we are not married as of yet.

3) pay cash for wedding and do not let wedding push debt higher.

I am only paying cash for the wedding - have an ING account that is open only for that.

4) do everything you can now to maximize fiance's earning power when he passes bar (maybe be flexible and you work 2 jobs now, so he studies and aces bar exam in a year or two).

Yeah, I might be able to do this.

[tripods68]

On $8000 net take-home pay household budget:
Fill in the blanks

$2500 a month student loans
+$1500 Mortgage payment
+$400 PITI
+$500 Food
+$300 Utility/Garbage
+$70 Verizon Family Plan (Unlimited calls)
+$350 Gas
+$100 car maintenance
+$250 car insurance
+$150 entertainment
+$200 vacation
+$180 cable/internet
+$150 Clothing Allowance
+$450 car loans ($25K new purchase)
+ Term Insurance/Disability
+ Retirement Contributions + IRA (Pre & Post tax contributions)
+ Credit Payments (if any)
+ Raising a baby (Priceless) NOT!


Estimated cost $7100 monthly expenses. Of course, I don't know how you all live your life. But this gives you an idea. You should develop a budget first see if you can afford having a mortgage with your student loan.

If you do, try owning a condo first below $150K or perhaps renting for the next few years until you solidify your finances. However, it is scary owning a home with all those expenses when one create a budget. Then they realize how much they don't have or are living paycheck to paycheck. Here's another option, postpone owning a house, until you payoff all your student loans. That's really your biggest hurdle financially that you cannot overlook and must overcome IMO. Good luck

[ScrimpAndSave]

Oh wait a sec...the $1500 would include the PITI...not just the mortgage.

Cars a paid off. $500 for food for the two of us it way too much. We both live within 10 miles of our jobs, so the monthly gas payment is much lower than $350. I spend $600 a year on car insurance.

And once again...nooo babies.

[jIM_Ohio]

1) save 20% of paychecks. 10% to retirement and 10% to house fund.

I currently take home $1,156 every two weeks and save $700 of it.

2) keep expenses and debt low. Start repaying the debt now (why wait). Paying this down now saves you money and would allow a larger house payment because debt load would be lower.

I am debt free. Any debt there is - is in his name...we are not married as of yet.

3) pay cash for wedding and do not let wedding push debt higher.

I am only paying cash for the wedding - have an ING account that is open only for that.

4) do everything you can now to maximize fiance's earning power when he passes bar (maybe be flexible and you work 2 jobs now, so he studies and aces bar exam in a year or two).

Yeah, I might be able to do this.

Maybe I am missing some posts in the times I check back, but you are clearly asking some questions, but not giving whole context to the problems which need to be solved. You need a full plan and are only looking at one piece of the plan 2-3 years out while not disclosing all aspects of the plan/needs in each thread (this is second or third thread related to this, right?).

What are savings levels (for retirement and non retirement accounts). In the non retirement accounts, how much of that will be left after the wedding is paid for?

You need to outline the WHOLE plan to get where you are going, and not try to solve a budget problem which is 2-3 years away from happening.

In addition you are looking at items as "his and hers", yet are talking about getting married and sharing a mortgage (and life) together. I would tackle the debt now if you are saving as much as you suggest (because I doubt you could beat the debt cost in a savings account over a 2 year period). In addition the debt payoff would allow you to afford more house in 2 years anyway (better ratios).

[jIM_Ohio]

Of course, I don't know how you all live your life. But this gives you an idea. You should develop a budget first see if you can afford having a mortgage with your student loan.

If you do, try owning a condo first below $150K or perhaps renting for the next few years until you solidify your finances. However, it is scary owning a home with all those expenses when one create a budget. Then they realize how much they don't have or are living paycheck to paycheck. Here's another option, postpone owning a house, until you payoff all your student loans. That's really your biggest hurdle financially that you cannot overlook and must overcome IMO. Good luck

I don't agree with first part (in the context given) but do agree with most of second part (in context given).

OP should do a few things.

1) marriage is stressful. Even if you love the person and trust them, I think most married people will agree the first 3-6 years of marriage are more difficult than years 7-death. I became a much better husband after around 5 years (and that is not because I learned to say "yes dear" more).

2) moving is stressful. Regardless of situation, I would not recomend moving often. High expenses, lots of work, and quite stressful.

3) a new job is stressful. learning new rules, processes, procedures and people. Takes around 2-3 years to get comfortable with a new boss. Add to that the issue that new Lawyers work more as well.

Account for this stress financially by staying debt free (pay off student loans, avoid house purchase to lock you into any long term decision) and raise cash as much as possible.

[ScrimpAndSave]

I guess that is what we will do. I've mentioned before - my dad has invited us to live with him for two years. I live with my father now and pay rent...so we would just up the rent (it would still be far less than living in an apt).

[DebbieL]

I'm going to be the one person to say I think it's wise for you NOT to pay off his student loans for him. They are his, and you aren't even married. Things happen, people break-up, etc. I would not put one penny towards his debt when you aren't even married yet. My DH and I don't combine debts or anything and we ARE married, lol. His debt is his. We split bills in our own way (I pay rent, he pays food and utilities). We both keep our finances separate - and we are the happiest couple I know. We don't (and never will) fight over money.

Good luck with all your plans!

[ScrimpAndSave]

Debbie, thanks so much for your post...

I have no idea helping him with his debt (once we are married). But for now...I don't think I should be the one working 2-3 jobs to put him through school. I we were married - it would be a different story.

And he has $20,000 in cc debt. The cards are cut up and he does not use them anymore. Should I help him contribute to this debt monthly? When he graduates and we get married - I know we are going to attack the $20,000 in CC debt aggressively because it is the only cc debt that we will have.

Until then, do you think I should contribute at this time (being unmarried)?

I just don't think it is smart. I feel like I should save everything I can (for the wedding and house)...and every few months I will give him $500-$1000 to help him pay rent and utilities when he is a little strapped...that is what I am doing now.

[tripods68]

When I got married, I didn't want my DW to burden her with my student loans and credit card debt. I paid it on my own within a year. And Yes, I agree completely with Debbie, it's really not your business to pay his debt. It is after all - all in his name. Even when you get married, its his responsibility. He should pay it off. Keep your account seperate. It's also a lot easier to breakaway financially in case your relationship does not work or you never get married.

[disneysteve]

Once you are married, his debt is your debt and your debt is his debt. You cease being 2 individuals and become one couple. When we got married, I was in my last year of residency with over $100,000 in student loans. It didn't matter how much I earned and how much she earned. Having to make the loan payments affected both of us equally because it played a big part in how much we had available to spend and save. I have no clue how we could possibly have kept the debt separate from the household finances.