This is what I see being advertised and recommended as the basis for figuring out how much monthly payment you can afford. Who comes up with this, the banks? Maybe I'm just a tightwad, but that seems awfully high to me. That means that if you figure your net pay is 75% (ballpark) of gross, then your mortgage payment is taking up a full 37-40% of your monthly net pay?
Now that we've got only 6 years to go to pay off our mortgage, my wife thinks it's time to look at a bigger house.
The only reason I'm even thinking about it is because she found one that's in an area we really like, more square footage, 5 acres with a pole barn and a pool. Our payment right now is currently 9% of our monthly gross. We're both 42, college for 2 kids starts in a couple years, and I'm being told I can afford a house payment of $2,300?? We would need a monthly payment of about $1,350 for a 15-yr loan, and I'm thinking no effing way on that! That will also put me at 57 years old before the damn thing is paid off!
So ... anyone else going through this dilemma right now? I really like the house, but they're gonna need to drop the price about $30K (asking price is $299K). The house has only been listed for a month, so maybe that will be possible. Like I said, maybe I'm just a cheapass!