Reply to HHI $250k what would you spend on mortgage?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A good rule of thumbs is 2x to 2.5x of your gross income. You should buy a 500k to 750k house depending on your other expenses and your savings goals. [/quote]

This “rule of thumb” actually said 3-3.5 times. It was based on 14-16% interest rates from the early to mid 1980s. The old rule of thumb was replaced two decades ago with 28-33% of pretax income. [/quote]

this is a little absurd.. would mean a 6k mortgage (28 percent) at 260k income.[/quote]i agree this seems high.  But, also agree that I have heard that rule.  You would maybe feel better with $4,000 which is completely do-able. [/quote]

I've heard this rule too but it only seems to work IRL if you have no other real expenses.  Look at the people reaming the OP of the other thread for having a $3500k mortgage on $260k HHI.....although in that case it sounded like they purchased before having kids (one of whom is SN) whereas the OP of this thread is one and done and knows what that kid needs.[/quote]

Yeah I think this rule only worked back when education was a lot cheaper - now having to plan for that is like having to plan for funding a second mortgage[/quote]

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