$450k mortgage on a $265k income is definitely affordable. But WHETHER to do it is debatable, your PITI is increasing from $26k to $55k, more than a twofold jump.
If you do spring for the sample home, get rid of the 9.2% investment in bonds in His 401(k). Move that to equities, sell exact amount of equities in taxable for additional down payment. You will have essentially exchanged bonds yielding aggregate 4% pretax, to a single bond yielding 6% pretax. The difference in yield is worth it to take the liquidity risk.
If you do spring for the sample home, get rid of the 9.2% investment in bonds in His 401(k). Move that to equities, sell exact amount of equities in taxable for additional down payment. You will have essentially exchanged bonds yielding aggregate 4% pretax, to a single bond yielding 6% pretax. The difference in yield is worth it to take the liquidity risk.
Statistics: Posted by lakpr — Thu Oct 31, 2024 12:23 am — Replies 1 — Views 116