Long time lurker of these forums, coming to ask for some advice/perspective as my significant other is starting MS4 and beginning to think about residency:
We have gotten lucky in that I worked in a high-paying job while SO was in medical school. We outright own a house, worth ~$300k, in a hot (seller-friendly) housing market. No debt at all (student or otherwise). About $50k in savings and another $50k in retirement accounts. Being 30, we're probably a bit behind on retirement savings, but we are debt-averse and wanted to pay off the mortgage.
We'd like for me to stay home with (future, potential) children while SO is looking at a combined residency/fellowship program (SO is an MD/PhD) that will take 5 years. So assuming my income is zero, but we have this pile of at least $300k in cash on-hand (once we sell this house), and SO is making a resident's salary, how much house could we reasonably afford to buy?
I know that buying a house in residency is generally "bad", but we really hate renting, and will likely be in the same place for 5 years. Also, we tend to spend quite a lot on living expenses.
My calculations lead me to think that we could afford about $750k on a 5/1 ARM.
Any thoughts on that, or other sage advice about our financial situation as we begin this rocky ride?
We have gotten lucky in that I worked in a high-paying job while SO was in medical school. We outright own a house, worth ~$300k, in a hot (seller-friendly) housing market. No debt at all (student or otherwise). About $50k in savings and another $50k in retirement accounts. Being 30, we're probably a bit behind on retirement savings, but we are debt-averse and wanted to pay off the mortgage.
We'd like for me to stay home with (future, potential) children while SO is looking at a combined residency/fellowship program (SO is an MD/PhD) that will take 5 years. So assuming my income is zero, but we have this pile of at least $300k in cash on-hand (once we sell this house), and SO is making a resident's salary, how much house could we reasonably afford to buy?
I know that buying a house in residency is generally "bad", but we really hate renting, and will likely be in the same place for 5 years. Also, we tend to spend quite a lot on living expenses.
My calculations lead me to think that we could afford about $750k on a 5/1 ARM.
Any thoughts on that, or other sage advice about our financial situation as we begin this rocky ride?

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