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Is This Mortgage Too Big?

My wife and I are thinking of purchasing a new home. We are both nearly 30 years old and have two children under 2 and plan to have another in the next year or so. My wife stays at home with the kids and I am a business owner. We currently live in a 3 bed 2 bath home that we own but have quickly run out of space with only two kids, so adding a third would be very difficult. We are looking at a home around $800k. We got pre-approved at 7.5% interest (which I don’t like but self-employed) and this makes the monthly payment about $5,500 per month. Our current monthly mortgage payment is $900 (starter home with 2.6% interest rate). This $800k home we are looking at would likely be the home we live in until our kids graduate high school so we would not move for a very long time (if ever).

I’m a big into saving and investing in real estate so aside from this slowing down the velocity in which I can buy investments, is that mortgage out of our league? My monthly income has been around $50k since August 25 and it’s somewhat predictable. I like the idea of our mortgage being around 10% to 20% of monthly income so it falls in that bucket. But but going from our current mortgage, which we literally don’t notice, to a noticeable mortgage makes me slightly uneasy. Our target total spend including the mortgage, private health insurance, and all other spending is about $15,000.

submitted by /u/Sad_Investment4903
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Is This Mortgage Too Big?

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