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ILLUSTRATIVE EXAMPLE

How much house can we afford?

See the home price, cash reserve, and monthly cost that fit the rest of the plan. The accounts, amounts, and answer below are fictional.

LSAMPLE ANSWERILLUSTRATIVE
THE SHORT ANSWER

Yes, if you put 15% down and keep total housing costs below $4,800 a month. That leaves about $48,000 after closing—roughly six months of current spending—and lets both of you keep your existing retirement contributions.

KEY NUMBERS
Home price$700,000
Down payment$105,000
Cash after closing$48,000
WHAT MATTERS
  • Putting 20% down lowers the payment but leaves too little cash for repairs or a job interruption.
  • Property taxes, insurance, and maintenance add more to the monthly cost than the mortgage quote alone shows.
  • The purchase works without changing retirement contributions, but it reduces room for another large expense in the next two years.
POSSIBLE NEXT STEPS
  • Set a $4,800 ceiling for mortgage, taxes, insurance, and homeowners association fees combined.
  • Keep at least $45,000 outside the down payment and closing budget.
  • Run the same plan with childcare or parental leave included if either is likely soon.
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TRY IT WITH YOUR OWN NUMBERS

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