You are likely on the edge if you use the 28% rule (mortgage+taxes+insurance under 28% of gross monthly income). Are the $350k homes livable and of sufficient size for your family? Or are you going to need to put additional money into repairs in the next couple of years? Do they have newer roofs, windows, insulation, HVAC? Each of those things could cost $10-50k dollars easily.
I would suggest putting $2500 in a savings account each month starting now. This will allow you to test if a $3500 payment is doable for you as well as help you save up some more cash for a down payment or to pay off your debt.
It looks like rates are going to continue to climb but hopefully home prices are stabilizing, so you should not be out anything by being slow and methodical about this. When does your lease end?
FailingDan t1_jad8k7m wrote
Reply to I can’t wrap my head around if I can actually afford to buy a home by [deleted]
You are likely on the edge if you use the 28% rule (mortgage+taxes+insurance under 28% of gross monthly income). Are the $350k homes livable and of sufficient size for your family? Or are you going to need to put additional money into repairs in the next couple of years? Do they have newer roofs, windows, insulation, HVAC? Each of those things could cost $10-50k dollars easily.
I would suggest putting $2500 in a savings account each month starting now. This will allow you to test if a $3500 payment is doable for you as well as help you save up some more cash for a down payment or to pay off your debt.
It looks like rates are going to continue to climb but hopefully home prices are stabilizing, so you should not be out anything by being slow and methodical about this. When does your lease end?