Reasonable % of TC going towards mortgage

Greetings! I’m in the process of looking for our first home, in the Bay Area. Planning on putting a 500k down payment and looking at my options for the price I’m willing to go with. For under 1M the options in the city are either old flats or newly built condos with crazy HOA. I’m wondering if I should go the extra mile and push closer towards 2M to get a house?😅😅 The 2M option is looking at a 12k/mo mortgage, which is almost all of my take home base salary (around 15k) and although I get significant RSUs I don’t feel secure about the more variable part of compensation. Like, I can control the bonus part by delivering good enough work, but the RSU part I can’t really control. How do you plan around this? What happens with mortgage if you lose your job, or you need a career break or something? I feel good working hard today but I don’t think I’ll do the same for 30 years 😀 TC ~ 500k, HHTC ~ 600k Grew up poor so totally inexperienced in housing personal finance.

an assistant manager

2mo

I wouldn’t go more than 25-50% or you’ll be stressing due to being house poor and unable to covered other costs as they come up (broken appliances, car issues) or even just enjoying life. Would also make sure you have 1-2 years worth of mortgage in savings just in case the layoff gloom hits ya

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greatking

2mo

A Team Lead

Plan for one or both of you losing high paying jobs. Plenty of my friend's TCs went from 450+ to <200 in last 2 years and they went from house poor to f poor and stressed. It may not happen to you but do include this in your math

plentycheeku

2mo

works at

Zomato

Yes this could definitely happen. Also I or my partner could want to change career or try new risky things. What did your friends end up doing, did they sell the house?

a data analyst

2mo

bhai jis din mere pass itne paise hoge tab sochuga😂🥹

hrterminator

2mo

currently not working

Do you have a healthy emergency fund to cover unexpected expenses ?

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