Conventional wisdom used to be between 25 and 33%. In DC area, I see 35 to 40%

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Jan 2, 2021
6:49:02pm

Iman23 Truly Addicted User

Conventional wisdom used to be between 25 and 33%. In DC area, I see 35 to 40%

pretty regularly. Sometimes higher in certain situations.

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Iman23

Bio page: Iman23
Joined: Jan 18, 2008
Last login: May 13, 2024
Total posts: 42,685 (2,740 FO)

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Messages

Author

Time

What percentage of your income is considered prudent for a mortgage nowadays?

byuguns55

1/2/21 6:28pm

50%

pink22

1/2/21 6:29pm

RE: 50%

byuguns55

1/2/21 6:31pm

I say 20% or less is ideal.. though not practical for many given

cougfanz

1/2/21 6:30pm

we would keep and rent out when we move

byuguns55

1/2/21 6:32pm

Mortgages are for losers.

1/2/21 6:34pm

none taken...

byuguns55

1/2/21 6:37pm

<< Deleted >>

1/2/21 6:38pm

okay guys, I get it. I wished I had $750,000 socked away in order to pay

byuguns55

1/2/21 6:39pm

$750,000!?!? No wonder you have a mortgage!

1/2/21 6:50pm

Sorry, I failed to read the body of your post and answered a question you

1/2/21 6:58pm

no worries brother!

byuguns55

1/2/21 7:13pm

If you are really disciplined, I think 50% is fine,

1/2/21 7:00pm

To be clear, I’m not advocating a bigger house, but a quicker payoff.

1/2/21 7:02pm

Have you tried dog yet?

1/2/21 7:03pm

doing our best to steer clear!

byuguns55

1/2/21 7:14pm

My old man went there on the mission in the 70’s. He says

1/2/21 7:20pm

Completely depends on income, other debt/monthly obligations, etc.

byubyu

1/2/21 6:39pm

When i was getting one i think they said no more than 40%

Heath Squashwell

1/2/21 6:40pm

was that the bank or financial advisor advice?

byuguns55

1/2/21 6:43pm

Bank

Heath Squashwell

1/2/21 6:57pm

To really get a grip on finances you should keep your dependency rate or

Nat Gas Man

1/2/21 6:41pm

Depends on other debt but lenders want to see less than 40% of income going to

1/2/21 6:46pm

Understood...I guess I should've phrased it this way: if you can't pay cash

byuguns55

1/2/21 6:54pm

For conforming loans it is max 28% of gross to mortgage + costs, 36% all debt.

Bandit

1/2/21 6:46pm

Conventional wisdom used to be between 25 and 33%. In DC area, I see 35 to 40%

Iman23

1/2/21 6:49pm

says my realtor!

byuguns55

1/2/21 6:54pm

Everyone is different by my goal was 25% of my net monthly income. It’s not

1/2/21 6:50pm

28%. See 28/36 rule.

AF Cougar

1/2/21 6:59pm

Homes, no more than 3 x annual salary and cars no more than 1/3 annual salary.

DwigtA2RM

1/2/21 8:04pm

The former is literally impossible for 95% of the people. Make $70K...

jjshol1126

1/2/21 10:09pm

That was true before interest rates ranked. You can afford a little more now

Nat Gas Man

1/2/21 10:15pm

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