Reply to 7K Mortgage on a HHI of 500k

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[quote=Anonymous]I posted my simple rules elsewhere...

1) Have the cash to put 20% down
2) Mortgage must be no more than 2.5x HHI
3) Save/invest 20% of your gross HHI every year

Nobody can predict the future, and all available evidence shows that trying to time the market (RE, stocks, etc) usually results in a loss. But if you can follow these three rules, you'll be in solid shape to weather whatever financial storms come your way.

On caveat for #2 above--if you want flexibility to work part-time, take a risk with a career change, etc than your goal should really be mortgage less than 2x HHI.

Also, w/regard to the poster saying to be willing to spend another $1000/mo more on the mortgage...I appreciate the sentiment as it certainty doesn't make sense to be penny-wise pound foolish.  But consider that it's not really $1000 more per month, it's closer to $1500 pre-tax.  So if you live in the house for 10 years that extra "1k/mo" works out to ~$180,000.  Is that worth it?  Only you can know.

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