We make $200K a year and want to buy a house — but is 40% of our take-home pay too much for us to take on in a mortgage?

Core Insights - The housing market has become increasingly difficult for typical households, with only 28% of homes being affordable [1] Financial Considerations - A household with an income of $200,000 and no debt may find that purchasing a $600,000 home could consume around 40% of their take-home income after accounting for property taxes and other costs [2][3] - Monthly payments for a $600,000 home with a 10% down payment at a 7.00% interest rate would be approximately $4,572.63, significantly increasing monthly housing costs [3][5] - Experts recommend saving about 1% of the home's value annually for repairs, which would add an additional $500 per month to housing expenses, raising total monthly costs to around $5,073 [4] Affordability Concerns - Spending 40% of income on housing may not be advisable as it limits financial flexibility for other expenses and savings [4]