Apartment vs buying a house on $120k salary?

At your income and with those debts, a $450k house is likely out of reach right now. Lenders typically want your total debt-to-income ratio (DTI) to be under 43%, and with a mortgage on a $450k house (plus taxes, insurance, and your existing debts), you'd probably exceed that. Also, $30k is less than 10% down, so you'd have to pay PMI, increasing your monthly payment. Focus on saving more aggressively for a larger down payment or consider a less expensive property, maybe under $350k. Don't forget to factor in closing costs (2-5% of the purchase price), property taxes, homeowner's insurance, potential HOA fees, and maintenance costs, which can easily add hundreds of dollars to your monthly expenses.

Factor in closing costs (typically 2-5% of the loan amount), moving expenses, and furnishing a house, which can easily eat up a large chunk of your $40k. With that salary, a mortgage might be doable, but consider how interest rate hikes could impact your monthly payments. Apartments have renter's insurance, usually cheap, but houses have homeowner's insurance, plus potential HOA fees. A detailed spreadsheet comparing all costs is essential.

With a $120k salary and $30k saved, buying is possible, but be cautious. Factor in not just the mortgage payment but also property taxes, homeowners insurance, and potential maintenance costs. A good rule of thumb is the 28/36 rule: housing costs shouldn't exceed 28% of your gross monthly income, and total debt (including housing) shouldn't exceed 36%. Run the numbers for specific properties you're considering. Renting allows more flexibility and predictable costs, enabling faster savings accumulation for a larger down payment later or other investments.