401k contribution: $30k/year [43% savings rate]

Annual Realized income = $75k - $30k = $35k

Location: Northern MA (suburbs). Will also be looking at Southern NH.

Savings for house: $90k

(Total savings of $100k, but I would like to invest at least $10k into an index fund)

Take home pay: $1700/month

Age: 27

Job stability: high

Time Horizon: Looking to buy in 3 years.

**1)**

I am hoping to buy a $200k 3 bedroom home in 3 years (whether I can actually find that price is another question) - do bogleheads think this price point is feasible in northern MA/southern NH?

**2)**Options I'm considering:

Option A:

If I put 45% down ($90k): At 6% interest (a conservative estimate), the mortgage ALONE would be $660/month (about

**40%**of my take home pay). Then add taxes and insurance...

Pros:

Lower down payment

Lower mortgage payment (but still high)

Cons:

Opportunity cost: If I had chosen to put 20% down instead, I could have invested $50k extra.

Option B:

If I put the traditional 20% down ($40k), my mortgage will be $160k. At 6% interest, the mortgage ALONE would be would be $960/month (

**57%**of my take home pay). Then add taxes and insurance...

Pros:

No opportunity cost with investing

Cons:

Even bigger mortgage payment

Option C: Rent

I don't see how this would make sense unless I can find a similar place where the rent is drastically cheaper than the houses PITI.

Option D:

Find a cheaper house (if that's possible in my area). Honestly I think $200k is the lowest it can go for liveable 3 bedrooms.

Option E:

Or do I have to sacrifice my 43% savings rate to continue living here? Last resort!

**3)**- Bonus Question

Side Note: According to

*The Millionaire Next Door*, I keep my mortgage loan below

**2x my annual realized income**($35k*2 = $70k) - but that would mean I can only afford a $160,000 house(not even that, because I have to factor in taxes and insurance too) if I put down my $90k savings. But I don't think I can find that here in MA anyway.

Just curious what bogleheads think of this "2x rule" - is this also bogleheads consensus?