My mortgage - FML

If you make under $60k, I would not even consider it. Personally I wouldn't feel comfortable with that note unless i made over 80k but I tend to be on the safe side. Just remember, with a home, comes expenses related to the home. Also, do you have a car note or will you need a new vehicle anytime soon?

Assuming T&I are included in the payment, no or very cheap car payment, somewhat frugal lifestyle = > $71k. $2300/yr for mortgage insurance is crazy. Whatever you do, build up a cash reserve fund of 9-12 months if you do not have one for unforeseen house and other expenses.

You guys are right on with the salary. I do have a car note and I definitely overspend on the weekends, which makes my rainy day fundage a lot lower than Id like.

I would do the latter if I could... But a starter home up here is minimum 550k unfortunately unless I want an hour commute

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arger house and renting 1 or 2 rooms out to friends

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working on this right now myself

Total Mortgage payment = 28% of gross income
Total monthly debt (mortgage + all other monthly debt, e.g. car, credit cards, etc.) = 36% of gross income

Plus 20% cash down payment

My family runs a large savings and loan and this has been the rule for all their mortgages since 1928, and this is why they have been in business since 1928 and have had zero defaults since 2008. Any federally chartered savings and loan will use the same ratios. Commercial banks getting away from sound lending risk analysis (largely by demand of the government) is why we had the mortgage crisis in 2008.

You need to include everything in your mortgage payment (PITI = Principal + Interest + Taxes + Insurance, plus the PMI you are paying) to do this calculation right. You just included principal + interest + PMI, but no taxes or insurance.

If you cannot afford the total mortgage costs at 28% of gross income, you have no business buying a house.

You are going about the process all wrong, and you are essentially buying a car based on the monthly payment, rather than the cost of the car. No one should buy a house based on the monthly note alone, and the fact you include PMI means you have little to no down payment, which means you have decided to spend your money thus far in life rather than save money responsibly to prepare for home ownership.

Instead, try starting with how much you make and spend every month, add in ALL the costs of the house, then add your car note, then take an honest look at where you are spending your money each month.

If you're too poor to meet the 28%/36% numbers, then work harder/smarter to make more money and save your money for a down payment instead of trying to be a "$30,000 millionaire". If you're over the 28%/36% number, you're not ready to own a home and will be flirting with financial ruin shortly.

I'm giving the purely financial side but, all this aside, it's okay not to own a home and I think the intrinsic value of owning versus renting is vastly overrated, especially since 2008 and given the cost of insurance in Louisiana. There are far better places to invest money than putting it into a house, which is really a liability that takes money out of your pocket, not an asset.

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I've thought about a roommate but you can't put a price on walking to the fridge naked

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I know. I've been living by myself, while working on a 3 month project and I really enjoy not having to wear full clothes unless I want to.

You posted a post just to say delete?

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But a starter home up here is minimum 550k unfortunately unless I want an hour commute

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Dude - where can you find a starter home here for under 550 without a 2 hour commute?