Can we afford an 800K home?

Combined Salary: $375K, very stable employment with expectations for small increases in the upcoming years. Student loans: $220K combined. No other debts, could only do a 10% down payment at this time. The house is a new build. When doing the monthly math, it seems we would still have $7-8K leftover even after mortgage, student loans, and retirement funding but the big number scares me. Interested in any input on this. I was hoping for lower, but home prices in our area are outrageous!

Yes you can afford it.

How you can have that much income and so little perspective/financial literacy is the only thing beyond me.

Yes easily.

I think you’re fine if this still allows you to contribute a healthy amount to retirement and savings, and in an area you think will continue to grow & increase your equity. Similarly, if this price point enables you to prioritize what’s important to you (i.e. does this price point allow you to live in the part of town you really want?) then that’s another value-add & quality of life improvement worth the spending. I’m in a similar position to you & while the number can feel alarming, what helped me the most was putting a budget forecast together to really feel more secure and comfortable with the numbers. Ultimately had to accept that the math doesn’t lie and take the leap!

You can do it. Keep in mind, home prices will likely increase, not go down, due to the shortage of housing. Also, if rates drop, you can always refinance and get the payment down.

Yes you’ll be fine.