Result: Assuming 4.5% interest rate, 30-year mortgage, a 20% down payment, and the same tax rate as above, we would be paying 1.8 – 2.2 times our current rent.
|3 bedroom, 2 bath home on nearly half an acre. Approx 1700 sq. ft. |
Built in the 18th century
This home would be perfect. Really, it could be my forever home - historic, old, lots of character, beautiful lot, in the same neighborhood where Mr. W grew up. With the exception of those oddly pruned shrubs, I love it. The 28/36 ratio essentially tells us that we can buy our dream home within the next few years. No way; we're not buying that. This is a home that we could maybe purchase in the next 10-15 years. Obviously, we haven't gone to any open houses for homes in this price range.
|4 bedroom, 2 bath home on .1 acres. Approx 1900 sq. ft. |
Has a den, family room, and formal dining room.
This is also a lovely home that we could grow into. The interior needs a little bit of work, but it has plenty of space and a good layout. It's in Mr. W's neighborhood, and I suspect that the price would be higher if the yard were larger. But again, this is more house than we could comfortably afford at our current income level. We haven't gone to any open houses for homes in this price range, either.
|2 bedroom, 1 bath home on .1 acre. 950 square feet. |
Has an office, but no dining room or family room
It's cute and charming, right? This is definitely a teeny-tiny starter home, and it would be a tight squeeze if we were to have more than one child. As you can see from the edge of the picture, the neighbors are quite close. However, it's in our target neighborhood and it's a home that would not prevent us from achieving our other financial goals.