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aigredoux

Buying a new house financial questions?

Butternut
9 years ago

This seems silly, but I don't have anyone else to talk this through.

My spouse and I are in our mid 30s, have 2 small kids (3 and 1), and need to move states for new jobs for both.

We currently have in assets:
$150k in cash
~$500k saved for retirement
~$40k saved for kids' college
2 reliable paid for cars
No debt (paid off student loans last year)

We currently owe ~$380k on our current house, and expect to list it around $700k and maybe sell for $650 or maybe a bit more? So we should be able to walk out with about $250k when we sell our house.

We have another 6 months to save and should be able to save another $50k, so we should be able to have about $400k downpayment and still have a $50k cash emergency fund.

My income will be $270k and my spouse's will be about $200k for the first three years then higher ~$300-$400k when he becomes partner.

The new state is more expensive, so to get a similar quality place, we would probably need to spend $1 million.

Is that a reasonable number given our savings and income, or should we cut back? We would like not to have to move twice.

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