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Old 03-09-2019, 11:58 AM
Covenant Covenant is offline
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Default How much did you spend on your home?

And what percentage of your income is your monthly housing payment (PITI)?

Another question: suppose you are a 30 year old actuary, fully credentialed, making around 120k, and you're looking to buy a home (note that none of these criteria apply to me). How much do you look to spend? 300k? 400k? More?
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Old 03-09-2019, 05:02 PM
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<12parsecs <12parsecs is offline
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I bought my house almost 20 years ago, but went with the recommendation of a purchase price of about triple my annual salary. Note that I put 20% down, had no other debt, and interest rates were around 7%.
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Old 03-09-2019, 05:26 PM
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All four of my houses that I've bought were right around 3x my gross income.

The last two the full payment was right aaroun 25% of take home pay. I had really good rates...
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Old 03-09-2019, 05:28 PM
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Quote:
Originally Posted by Covenant View Post
And what percentage of your income is your monthly housing payment (PITI)?

Another question: suppose you are a 30 year old actuary, fully credentialed, making around 120k, and you're looking to buy a home (note that none of these criteria apply to me). How much do you look to spend? 300k? 400k? More?
Not to be flippant, but I wouldn't be buying a house, I would look at getting a new job.
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Old 03-09-2019, 06:11 PM
Covenant Covenant is offline
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Quote:
Originally Posted by JohnLocke View Post
Not to be flippant, but I wouldn't be buying a house, I would look at getting a new job.
Sorry if I was unclear - I have very little experience at the moment, just curious to see how much older actuaries have spent on their homes. I'm a long ways from 30 and from FCAS. I suppose I could ask around the office, but that seems tacky.
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Old 04-16-2019, 05:10 PM
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I would think it depends a lot on how much homes cost. I hope many people are buying a home a place they want to live, which may not be the cheapest place you can find. Where I live, apartments start around 300K and house around 850K. I would need to account for other factors before saying "I'm not buying a house because it's more than 3x what I earn." If my goal is to buy a house here, then as long as I think I can manage the payments, I would do it asap, because they prices are going up. For example.
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Old 04-16-2019, 05:25 PM
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Quote:
Originally Posted by Covenant View Post
And what percentage of your income is your monthly housing payment (PITI)?

Another question: suppose you are a 30 year old actuary, fully credentialed, making around 120k, and you're looking to buy a home (note that none of these criteria apply to me). How much do you look to spend? 300k? 400k? More?
Depends on your down payment. Should be able to swing 300k with a 20% down payment. 400k is a stretch, approaching housepoor.
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Old 04-16-2019, 06:01 PM
Ninja Warrior Ninja Warrior is offline
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Quote:
Originally Posted by Covenant View Post
And what percentage of your income is your monthly housing payment (PITI)?

Another question: suppose you are a 30 year old actuary, fully credentialed, making around 120k, and you're looking to buy a home (note that none of these criteria apply to me). How much do you look to spend? 300k? 400k? More?
My monthly housing payment (including taxes and insurance) is about 12% of my gross pay. That being said, I bought my house less than 6 years ago and I have more than doubled my pay (from ACAS to FCAS and switched job for a promotion) during the 6 year period.

In regards to your second question, that depends on a lot of factors. For example, do you have other outstanding student loans/car loans or even credit card debt? How much money have you set aside for down payment? All these factors impact how much of a house you can afford.

When I purchased my home, I did not put 20% down but put enough down to be considered as a conforming loan ($417,000 at the time) so I could get good interest rate. I needed to pay PMI for 15 months but the housing market was rising and so I was able to refinance at a lower interest rate(the lender paid for new appraisal and closing cost) and got rid of PMI.

The purchase price was over 3X my salary at the time as well, but I did not have much other debts and my salary was rising quickly with getting my credentials. In addition, my rent was higher than my mortgage payment at the time, and so it made the purchase decision a no brainer.
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Old 04-17-2019, 08:15 AM
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My starter home in 1998 was 2x my salary. It was early in my career and I raided what little there was in my 401k so I could put 3% down and pay PMI. That turned out to be a good investment, it doubled in value in the seven years I owned it.

My current home, purchased in 2005, was 2.5x my salary, but if you factor in the down payment I now had from selling the other house, my mortgage was 1.8x my salary.
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Old 04-17-2019, 12:10 PM
tommie frazier tommie frazier is offline
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early career it was 3.5x? Next home was 2.5-3x. I am done buying houses.
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