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I make 3 times what you do and would never involve myself in a $5k a month mortgage.
Just wow.
Seriously...do it together - you and your wife. I am sure you are both reasonable and smart people. Go take a course.
You make $600k per year and you think $5k mortgage is too much? I think you are way too conservative. You only live once, don't be afraid to spend some dough.
You make $600k per year and you think $5k mortgage is too much? I think you are way too conservative. You only live once, don't be afraid to spend some dough.
Meh.
There are better things on which to "spend some dough" than one expensive house....
I am with stan4 and would not spend that on one residence.
I've always felt that finances are like a holey boat. You got water coming in every where, and all you see is the water, you can't find the holes.
I would (and yes -- this is PAINFUL) write down every single penny you two spend for a month, maybe two. You have got to see where your leaks are. And then find solutions.
It sounds to me like your wife really doesn't want to leave the house.
And that's fine. With knowing where all your money goes, you can find the places where you need to cut and can cut easily. A lot of people can spend money mindlessly -- even on stuff that's nice to have, but isn't necessary. That's an easy cut.
And you both need to understand that on this boat -- there is no captain. There are only deck hands. The captain is the BOAT -- your finances. Your finances right now are running YOU both, not both of you running your finances. If you two deckhands don't work together, the boat will sink.
I truly don't think you should ANYTHING in panic mode -- which I think you are near or at. Any decision made that way, you will regret. While you are trying to get a handle on the finances part, do some research on your home and values -- can you sell it and get out from under or are you underwater.
Are there other school districts that are just as good with better house prices?
There's going to be lots of late night conversations about this... and look up Gail Vaz-Oxlade. She's a Canadian debt free guru, who seems to be VERY practical. You just have to remember that if you use her budget sheets that some of the terms she
uses are Canadian. Confused me a little...
You make $600k per year and you think $5k mortgage is too much? I think you are way too conservative. You only live once, don't be afraid to spend some dough.
If you spend 5k on a mortgage, what does that tell me right off the bat?
You couldn't put enough down and you're likely in a jumbo mortgage (= crappy rates).
That tells me you are spending HUNDREDS OF THOUSANDS OF DOLLARS in interest.
I don't know how it is where you live, but property taxes here are a B.
So are homeowners' insurance rates.
Both of which go up with the cost of your property.
Never mind the heating/cooling costs.
IN TOTAL, I spend about 5k a month on my house (mortgage, taxes, insurance, pool guy, yard guy, maids, utilities, etc)...that's freakin' ENOUGH. Not start at 5K and then add on top of that! Insane!
My wife just quit her job to be with our kid (hopefully kids soon), so we took a pay cut and lost our health insurance. I can't imagine doing that if we'd be running at our max capacity.
I do spend dough. Nice vacations, cool cars, top notch food and liquor, all sorts of classes for my son, buying stuff for my family and friends, supporting local animal shelters...and I INVEST an awful lot, too.
You'd be a fool to just dump everything into a house.
Are there any rental homes in the area? Your best bet may be to sell your house, and rent for 2-3 years within the same school district. Then pay off debts, save money for downpayment and renovations on a smaller home. Your children would be in the same area and you can let them do the activities they are already in. Your wife could go back to work, but then you have to pay someone to watch your children and may not be worth it. You have CC debt because of the way you get paid, 80k salary and the bulk in commissions. If you cut back while renting , you can be in a new home in a few years with less stress.
Folks, his wife doesn't even want a $550k house, why do you think she will agree with a $2k rental?
Rental is embarrassing for someone who earns over $200k, I know I would be, i can't look at my friends or family, and I don't even earn that much.
Based on the posts I see, no one here lives in a $900k house, do you know how hard it would be to downsizing to a $1500 apartment rental? Get real.
I live an expensive house.
But I did not take out a big mortgage.
How?
I "embarrassed" myself for 5 years while saving a gigantic down payment, getting an emergency fund together, and building investments.
I drove an old truck, I took one vacation a year, no clothes, no fancy vacay, , and now all the chumps who think like you do are in this guy's boat and I am sitting pretty.
No one on his salary had any business taking that kind of mortgage.
Folks, his wife doesn't even want a $550k house, why do you think she will agree with a $2k rental?
Rental is embarrassing for someone who earns over $200k, I know I would be, i can't look at my friends or family, and I don't even earn that much.
Based on the posts I see, no one here lives in a $900k house, do you know how hard it would be to downsizing to a $1500 apartment rental? Get real.
You're putting down those suggestions when this ...
Quote:
Originally Posted by bbnetworking
how about claim bankruptcy? and surrender everything and start over, you have very good income and starting fresh can be a good thing.
... was your suggestion?
And why would you be embarrassed at being FISCALLY RESPONSIBLE? If your friends and family would look down on you for that, you need a better class of friends & family.
Folks, his wife doesn't even want a $550k house, why do you think she will agree with a $2k rental?
Rental is embarrassing for someone who earns over $200k, I know I would be, i can't look at my friends or family, and I don't even earn that much.
Based on the posts I see, no one here lives in a $900k house, do you know how hard it would be to downsizing to a $1500 apartment rental? Get real.
Quote:
Originally Posted by stan4
I live an expensive house.
But I did not take out a big mortgage.
How?
I "embarrassed" myself for 5 years while saving a gigantic down payment, getting an emergency fund together, and building investments.
I drove an old truck, I took one vacation a year, no clothes, no fancy vacay, , and now all the chumps who think like you do are in this guy's boat and I am sitting pretty.
No one on his salary had any business taking that kind of mortgage.
Same here. DH and I lived in a tiny coop in NY with 2 babies so we could put down $$$ on our home. There is nothing embarrassing about it. It's called delayed gratification. The OP got in over his head, and he is only 40 YO. Plenty of time to fix it. I think he needs to sit down with his wife and go over the numbers in detail, she will want to fix it too. In 3 years they can be in a new home, and more comfortable. Who cares what his current salary is regarding renting? People in my area rent apartments and their incomes in NYC are way above what OP is making.
This one is easy. Downsize like crazy. It's a shame that you are making good money and your reckless spending and out of control debt forces you to be chained down and this will put your marriage in jeopardy. Money needs to be managed, budgets need to be agreed upon and met each month. If you lived on much less than you make, you could be in a real sweet situation... but you have to change your ways and downsize immediately.
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