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

quote:

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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.