How much of a mortgage can I afford?

My rule of thumb for people with kids is a loan balance of 2 to 2.5x income. So you can afford a mortgage of $300K to $375K. You're looking for a home in the $400K to $550K price range.

ali r.
{downtown broker}

babsie02...I would say you can carry a total monthly obligation of about $3500 not including your 1800 childcare costs. So, depending on what other monthly expenses (car, credit cards,etc.) you have and what the taxes and insurance or common charges are, I would say a loan amount of 350k-417k. sunny_hong@countrywide.com

Would your husband consider staying home with the baby? The after-tax value of his paycheck, if you file jointly, will probably just about cover daycare and transportation expenses. If you have good benefits, his job won't serve much purpose unless he finds it personally rewarding. I know this is a little off-topic, but it might influence your housing choices.

West81st. Actually, he is in a union so I need him to keep working for the benefits but that is a good point. I am hoping that because he works 3-11pm, I can perhaps get a part time nanny to try to cut down on child care costs.

Babsie02: Thanks for not taking offense at the suggestion. We faced a similar choice when we started our family. It's a tricky one, for lots of reasons.

You're going through a lot of exciting changes. Good luck!