What is the “normal” ratio of mortgage loan vs annual income?

2.3 times you gross or net ?

Following also

Mine originally was 2.5 times at the time. As years go by your income generally increases and it didn’t feel as bad over time. You’ll be fine 2.5X or under. To me it’s more important from a cash flow perspective that you’re ok rather than a total loan amount

My new mortgage is about 2.5x my annual salary.

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What is the “normal” ratio of mortgage loan vs annual income?

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Don’t worry about “normal”. “Normal” people are on average not preparing for retirement and in debt up to their chins. Be better than normal

My first house, the bank preapproved me for damn near 7X’s my annual income.

I say go for it!

2.3x is nothing. Mine is 4x my household salary and we have never had any issues. The interest rates are so low right now you can afford a lot of house.

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I’m about to jump into a mortgage that is roughly 2.3 times what I bring in annually. Am I “OK” at this rate or am I forcing myself into a tough situation?

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You should think about monthly payment instead.

Make a monthly budget (include saving for vacations) see how much you have for a monthly house payment. Then determine the total mortgage from there.

If your only entertainment expenses are Netflix and internet, you can afford a lot more than if you do CrossFit, like to fly planes, play golf and your kids are taking gymnastics lessons and go to private school.

2.3 times seems conservative to me, so I’d think you’re fine unless you have a bad car note, student loans, or your kids have lots of expensive activities. I’d like to know where you’re living that you can get in a good school system at only 2.3 times income.

Many people look at their house as an “investment.” That is certainly a valid perspective.

I look at it as a place to live.

Your income will likely go up over the years.
Interest rates are historically low.

I don’t think you are doing anything foolish, as long as you don’t have to move for say 3 to 5 years.

Good luck!

I know others won’t like this, but if you can avoid PMI- do it.

How old are your kids? I was not prepared for the huge spike in expenses when my kids wen to high school. (My own fault for sure). My tuition went from 10K to 25K over 3 years time. My car insurance went from about $1800 a year to $12K a couple years later. We made it, but it was rough going for a while. The good thing is those are all discretionary expenses.

My situation is a bit different than yours but ours is looking to be 1.45X gross annual income. I think our debt to income was like 12%.