# What Will My Mortgage Cost a Month?

Since the birth of our baby The Wife and I have been discussing future living arrangments lately.  As often happens her parents (who live about 2.5 hours away) are visiting a lot more since there is someone there more important than The Wife and I (i.e. my cute child).  But we only live in a 2 bedroom place so it has gotten a tad bit tight when they visit for up to 4 or 5 days at a time.

The Wife hates math.  Hates it.  So in one of our discussions she said, I just need the numbers.  So the table below is for her, but everyone gets to share!

 4.0% 4.5% 5% 5.5% 6% \$250,000 \$1,193.54 \$1,266.71 \$1,342.05 \$1,419.47 \$1,498.88 \$300,000 \$1,432.25 \$1,520.06 \$1,610.46 \$1,703.37 \$1,798.65 \$350,000 \$1,670.95 \$1,773.40 \$1,878.88 \$1,987.26 \$2,098.43 \$400,000 \$1,909.66 \$2,026.74 \$2,147.29 \$2,271.16 \$2,398.20 \$450,000 \$2,148.37 \$2,280.08 \$2,415.70 \$2,555.05 \$2,697.98 \$500,000 \$2,387.08 \$2,533.43 \$2,684.11 \$2,838.95 \$2,997.75

The amount above is for the mortgage alone and does not include taxes or any other home expenses.  So for example if I bought a \$500,000 house and put \$100,000 down (20%) then I would have a \$400,000 mortgage which is likely to cost me somewhere between \$1,900 and \$2,400/month.

I am not exactly sure where our “sweet spot” will be.  Our main objective is to keep The Wife working as little as possible without sacrificing her time with our Son.  Living on Long Island being a one income family is near impossible in the areas we want to live, but we can be as close as possible as The Wife is in sales and can work as little or as much as she wants.

Our second objective is our lifestyle. We aren’t paycheck to paycheck right now nor do we want to be just for the sake and comfort of The Wife’s parents.  Notwithstanding the size will eventually effect our sanity, but I think we’ll be gone before that happens.

* All calculations were done using DinkyTown’s Mortgage Calculator

• Buffer
• Delicious
• reddit

## You have Successfully Subscribed!

### 23 Responses to What Will My Mortgage Cost a Month?

1. Are these based on 30 year mortgages?

I’m nowhere near ready to buy a house and therefore haven’t done any research at all. But the prices just don’t seem that high to me, even at 6%. They’d all be manageable on my current income, so in ~5 years, the opportunities excite me, though interest rates will likely rise:(

• Evan says:

Yup 30 year mortgage – but remember it doesn’t include taxes. So in the Long Island area any home I am looking at will have taxes of 8K+ adding another ~\$650 to the number.

2. Thanks dear, seeing numbers in black and white like that definitely helps. Still scary to think we’ll need to bump up our monthly payment that much just to afford a home around here…but not much we can do huh other than live here forever (or until we save a small fortune) or live with your parents (which aint happening for long lol)

3. Good luck on your home search. Looks like you’re in an expensive part of the country. How about looking at duplex so you can rent one unit out?
We are also in a 2 bedroom place and it is a bit tight with guests. Grandma is staying with us for a month and it’s working well so far, but it’ll be a lot more difficult when the baby gets older.

Last year, we got a 1 bedroom condo in the next building over and grandparents can stay there when they’re ready to move (currently rented.)

• Evan says:

VERY expensive part of the country. Grandma staying for the first month with the kid is HUGE. The Wife’s mom stayed with us for about a month after our son was born and it was wonderful

4. My University Money says:

Interesting comparison when you put them up side-by-side like that. Let’s pray the interest rates stay low for awhile longer. Imagine having a \$500,000 mortgage with the interest rates of 30 years ago?

• Evan says:

I couldn’t even imagine doing it with the interest rates of the early 80’s! They had 14 to 18% mortgage rates…but their CD and savings rates were around there too

5. Buying a home might be the most satisfying thing you’ll ever do. The feeling was PRICELESS when I finally bought my own. Something about it. It was just awesome.

Gluck!

• Evan says:

I bought my townhouse now but we are excited for the next step….

6. I think your taxes estimate is on the low side. You’ll probably be paying at least \$10,000 and up (and don’t forget you add your homeowner’s insurance into your payment as well). That fact alone makes it so difficult to get by on Long Island. At least with a fixed mortgage you know the amount you pay stays the same but with the economy the way it is who can tell what taxes will end up being?

It is possible to make it on one primary income though (we’re managing). You just have to plan and be careful with your spending.

Hey, we have a couple of places by me up for sale!

• Evan says:

Oddly enough our homeowners insurance was paid outside the payment, but you are 100% correct with the taxes I think I am underestimating the amount I’ll have to pay.

You should look into coming to the north shore!

7. Lord! How do young people manage to survive these days? Those costs are crushing.

Ahem… If Granma & Granddad want to visit for 4 or 5 days at a time, how’s about they chip in on the cost of digs large enough to accommodate them?

That duplex idea from RetireByForty has something to recommend it. One of my coworkers bought a duplex in a decent part of town (quite a trick around here). He installed his mother in one unit and himself & his S.O. in the other. It worked out really well–they weren’t right in each others’ faces, but they were close enough that he could keep an eye on her as she aged.

Why not have the new grandparents chip in on a duplex that could serve as a vacation home/visiting quarters for them? Your family could spread into the space when they’re not there, or use part of it to store things like extra pots and pans or your freezer. Or you could even rent it when you know they’re not going to be in town.

If the grandparents were paying for most or all of their unit’s value, it could bring your payments down enough for Wife to function as a SAHM.

• Evan says:

There is no way I could ask that of them they are also in laws! They actually employ The Wife and are generally awesome.

As it is we live 4 miles (yes, 4) from my parents, so I get that thrown in my face A LOT.

• LOL! Well, that casts a whole new light on the matter. The LEAST you could do is buy a house with guest quarters for them!

I’d look for a split floor plan…a place with a master bedroom on one side of the house and secondary bedrooms on the other. Some split floor plans provide two master-sized bedrooms, which would be perfect for these circumstances.

8. I think I focused too much on my mortgage payment itself, and not the other monthly expenses that came along with it. Like furnishing it, utility payments, etc.

• Evan says:

Excellent point! Everyone seems to forget the increased utilities on a bigger home

9. Move to Queens! There are deals to be had and taxes are cheaper.

• Evan says:

My parents have 2 places in Queens (Astoria and Bayside) I am a suburban boy….Try North Shore Nassau/Suffolk you’ll love it

• I second that Evan!

Besides, whatever deals there are in Queens there are that many more further out on the island.

10. Dave says:

The interest rates in your table look quite low, as they are currently here in the UK.What if rates rise, or do you have the option for a “fixed rate” mortgage?Dave

• Evan says:

In the US the overwhelming majority of people use a 30 year fixed

• Dave says:

Wow 30 years.

Fixed rates are very common in the UK but most are either 2,3 or 5 years. (they can be longer)

People tend to move every 7 years on average and a mortgage must be repaid and a new one taken out. A penalty clause (redemption penalty) is charged if you repay the mortgage whilst still in the fixed rate period. Hence people don’t usuually want them to be too long.

Dave

11. Rachel says:

I was wondering if you know anything about VA loans, and how much the mortgage is affected by this type of loan? We live in Hawaii and are are now starting to think about buying our first home, either here or in Florida.

Thanks