Is this common?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Had dinner with a coworker. He shared that his mortgage and taxes are $5500. He makes about $150K and his wife about $200k. In other words, nearly his entire salary is eaten up by the mortgage alone.

His net income is probably around $9K. Why do you consider $5.5K an incredible amount of money, but the remaining 3.5K so de minimis that you rounded it to zero?

I think people should look at their mortgage as a percentage of their "replaceable" income - i.e. if you lose your bigwig job, how fast could you really find a net income of 9k on a monthly basis again?

[Anonymous]

Anonymous wrote:Had dinner with a coworker. He shared that his mortgage and taxes are $5500. He makes about $150K and his wife about $200k. In other words, nearly his entire salary is eaten up by the mortgage alone. I make $200, my wife $100, and my mortgage and taxes are $2200.

Granted they have a high income but I was still kind of dumbfounded. Do people really lever this much? It seems so high risk.

They makes a combined $350,000, or more than $29,000 per month. Even if you assume 40% withholding, that's $17,500 per month. That's $12,000 left over. Hardly having his "entire salary eaten up." Or are you so out of touch that you believe that people simply cannot squeak by on $12,000 per month?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Had dinner with a coworker. He shared that his mortgage and taxes are $5500. He makes about $150K and his wife about $200k. In other words, nearly his entire salary is eaten up by the mortgage alone. I make $200, my wife $100, and my mortgage and taxes are $2200.

Granted they have a high income but I was still kind of dumbfounded. Do people really lever this much? It seems so high risk.

They makes a combined $350,000, or more than $29,000 per month. Even if you assume 40% withholding, that's $17,500 per month. That's $12,000 left over. Hardly having his "entire salary eaten up." Or are you so out of touch that you believe that people simply cannot squeak by on $12,000 per month?

+1

It is within the range we expect to pay. We make a bit more but it is reasonable to do on their income.

[Anonymous]

OP seems totally insecure.

[Anonymous]

Anonymous wrote:OP seems totally insecure.

Not sure why you think so. I was a millionaire by 30. I'd say im smart, and take calculated risks, that's all. Perhaps my risk tolerance is different than the average?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP seems totally insecure.

Not sure why you think so. I was a millionaire by 30. I'd say im smart, and take calculated risks, that's all. Perhaps my risk tolerance is different than the average?

You sound like a judgmental tool who wanted to be patted on the back about how smart you are and how crazy your friend is.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Had dinner with a coworker. He shared that his mortgage and taxes are $5500. He makes about $150K and his wife about $200k. In other words, nearly his entire salary is eaten up by the mortgage alone.

His net income is probably around $9K. Why do you consider $5.5K an incredible amount of money, but the remaining 3.5K so de minimis that you rounded it to zero?

I think people should look at their mortgage as a percentage of their "replaceable" income - i.e. if you lose your bigwig job, how fast could you really find a net income of 9k on a monthly basis again?

So people with one spouse at home should never buy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why are you looking at it as a proportion of his income? As a proportion of theirs, it's not too bad. If they have no other debt and stable jobs, it's perfectly doable.

Because it struck me as over levered. If one person lost their job, they'd be in deeeeeeep shit. I always lived on one income and banked the other - that's why at 33 I'm at 1.6M in retirement funds. I guess i just don't understand how people say "oh let's get into a mortgage we can't sustain if ANYTHING happens".

Maybe I'm just a weirdo, I don't know.

Maybe his net worth is much higher than yours.