Let’s use Dave Ramsey’s official calculator to see if I could buy it yet.
Your mortgage payment should be no more than $1,955, and your total mortgage amount should be no more than $264,301
At an interest rate of 4% on a 15-year fixed mortgage, you can afford a:
- $293,667 home with 10% down ($29,367)
- $330,376 home with 20% down ($66,075)
- $377,572 home with 30% down ($113,272)
- $440,501 home with 40% down ($176,200)
I would need a $335k down payment, which is basically my net worth. And that’s assuming no taxes… and Zillow thinks the house is worth $825k now… so… bleh. On the one hand, it would’ve been a great buy. On the other… I’m in a much less risky position… and much better able to save up living expenses to start a business which could be the big money win.
Oh, and just for fun let’s look at the monthly taxes for an $825k place. $860 a month. So even if I could pay for it, it’s at least $1200 in monthly fixed costs… and that’s not even thinking about maintenance. Bleh.