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Message
House = (x)household income
Posted on 8/10/15 at 12:21 pm
Posted on 8/10/15 at 12:21 pm
What number are you comfortable with? I realize the safe answers would skew at lower incomes, but let's assume we are talking about average, educated, non-OT ballers.
Wife and I live with zero debt other than mortgage. Our family is outgrowing the 3br2ba we are in and looking for more house.
Getting approved for houses 5-6x our income(20% down) seems insane to me, and there is no way we are buying that much house. On the other hand, those houses sure are nice....
Wife and I live with zero debt other than mortgage. Our family is outgrowing the 3br2ba we are in and looking for more house.
Getting approved for houses 5-6x our income(20% down) seems insane to me, and there is no way we are buying that much house. On the other hand, those houses sure are nice....
16
Posted on 8/10/15 at 12:31 pm to dragginass
25-28% of take home pay...no longer than 15 years.
Thats just my personal method.
If you have zero debt other than mortgage...I see no reason why you cant stretch it a little if you find something you really like.
Thats just my personal method.
If you have zero debt other than mortgage...I see no reason why you cant stretch it a little if you find something you really like.
Posted on 8/10/15 at 12:35 pm to dragginass
quote:
On the other hand, those houses sure are nice....
Posted on 8/10/15 at 12:57 pm to dragginass
Don't make the mistake of looking at anything just for fun that is outside the range you plan to pay.
Posted on 8/10/15 at 1:03 pm to dragginass
5-6x???? Good grief. My family is at about 1.8 and that's plenty of house. And that was putting slightly over 20% down from equity in a previous home.
Posted on 8/10/15 at 1:04 pm to Ramblin Wreck
quote:
Don't make the mistake of looking at anything just for fun that is outside the range you plan to pay.
quote:
Wife
Agreed.
Posted on 8/10/15 at 1:12 pm to Dirtman16
quote:
My family is at about 1.8 and that's plenty of house
Yeah, I am at 1.3 right now but will probably be buying within the year.
Posted on 8/10/15 at 1:22 pm to dragginass
I borrowed about 2X my income when I bought my current house.
I will be buying another one in a few years, will certainly stay under 3X.
I will be buying another one in a few years, will certainly stay under 3X.
Posted on 8/10/15 at 1:30 pm to Dirtman16
We are at about 1.5(x) in our current house. My wife just quit work so our income is going down, but we are still comfortable. Houses in the 3 (x) range of just my income are pushing my comfort.
Posted on 8/10/15 at 1:31 pm to dragginass
Smart answer? 25% (of take home) all in payment for 15 years
My actual answer- 25% all in payment over 30.
My actual answer- 25% all in payment over 30.
Posted on 8/10/15 at 1:35 pm to eelsuee
I'm at about 2.75x income but both wife and I have substantial guaranteed raises + savings accumulated. In 8 months we should be down to 2.25x income with savings/liquid investments of 12 months
We are very comfortable with our budget but if we were to get to 4x+ income, I don't know how you can survive without going on a ramen noodle diet/making very significant cutbacks
We are very comfortable with our budget but if we were to get to 4x+ income, I don't know how you can survive without going on a ramen noodle diet/making very significant cutbacks
Posted on 8/10/15 at 1:37 pm to AUjim
quote:
Smart answer? 25% (of take home) all in payment for 15 years
My actual answer- 25% all in payment over 30.
That's where I'm at. We are on a 15yr mortgage right now, but moving up to enough house to satisfy the family, and staying on 15yr means an uncomfortable payment. I've resigned myself to the 30yr for this move, and just paying extra when comfortable.
Posted on 8/10/15 at 1:53 pm to dragginass
I think the x increases with income
Can someone who makes 60k a year with a wife and two kids afford a 240k mortgage? Probably not
Can someone who makes 150k a year with a wife and two kids afford a 600k mortgage? I would think so
Can someone who makes 60k a year with a wife and two kids afford a 240k mortgage? Probably not
Can someone who makes 150k a year with a wife and two kids afford a 600k mortgage? I would think so
Posted on 8/10/15 at 1:55 pm to Coach Guidry
quote:
25-28% of take home pay...no longer than 15 years.
25-28% even on a 15 year is tying up a lot of cash flow with housing. Sure its an investment too, but many people would feel cash poor in that scenario.
We are about 9% of gross for our housing. And it feels like we are spending so much on housing.
I couldn't imagine being at 28%.
Posted on 8/10/15 at 2:03 pm to dragginass
We are at 1.7, but my wife is going back to school, so we're a bit higher now 
I'm glad we weren't any higher back when she was working a full time job.
I'm glad we weren't any higher back when she was working a full time job.Posted on 8/10/15 at 2:25 pm to Hawkeye95
quote:
We are about 9% of gross for our housing. And it feels like we are spending so much on housing.
Yes, but where do you live? If I were to spend 9% of gross for housing, it would be in the hood or an hour away.
Posted on 8/10/15 at 2:32 pm to LSUtoOmaha
quote:
Yes, but where do you live? If I were to spend 9% of gross for housing, it would be in the hood or an hour away.
i live about 2 miles from downtown denver.
I think the option you are missing is make more money.
Posted on 8/10/15 at 2:34 pm to LSUtoOmaha
quote:
Yes, but where do you live? If I were to spend 9% of gross for housing, it would be in the hood or an hour away.
Median US household income is $52,000. That would work out to $390 a month on rent/mortgage.
Posted on 8/10/15 at 2:39 pm to Cold Cous Cous
The 9% rule is a freaking awesome Money talk post
Lets say you do well for yourself and bring in 100k in New Orleans. You are the cream of the crop there.
After 401k, health ins, taaces etc your take home will be around 5k to 5.5k a month. 9% of that is $495 a month. Enjoy living in govt housing 
Lets say you do well for yourself and bring in 100k in New Orleans. You are the cream of the crop there.
After 401k, health ins, taaces etc your take home will be around 5k to 5.5k a month. 9% of that is $495 a month. Enjoy living in govt housing
Posted on 8/10/15 at 2:42 pm to Hawkeye95
quote:So, lets say you ball out and make 300k. Your 9% of net leaves you at a monthly payment of $990
i live about 2 miles from downtown denver. I think the option you are missing is make more money.
You living in a 440 sq ft crack den two miles from downtown?This post was edited on 8/10/15 at 2:44 pm
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