Reply to Income $176k — how much would you spend on mortgage now?

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Reply to "Income $176k — how much would you spend on mortgage now?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]This is OP. Is the rule still that you shouldn’t spend more than 28 percent of your gross on mortgage and insurance and real estate taxes? That would be $4100, which is a lot.[/quote]

I think using gross makes no sense. I thought it was 25-30% of net. [/quote]

The standard has always been tied to gross income, not net income, even if you feel more comfortable using net income (which is reasonable). That said, using gross is totally fine financially, esp if you don’t have other substantial debt.

We had a similar income when we bought and our mortgage was around 2400, which I now recognize as more conservative than was necessary. Our income has increased significantly since we purchased and we could have afforded to stretch more. That said, stretching in DC at this income may get you into a different neighborhood but doesn’t necessarily get you a better house. And I love our neighborhood and our house so I don’t regret not spending more. It’s really nice to not have financial stress and to be able to treat myself to nice frivolities like a really nice hotel on vacation or expensive handbags, or substantial charitable donations to orgs doing work I care about.[/quote]

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