I pay about ~10% of gross income I bought really smart 12 years ago and my income as gone up 10 fold since then so I don't think I’m a good example. I also bought a Tri-Plex so the renters pay a huge portion of my mortgage.
I'm 37 and I only have 8 more years until retirement according to my financial plan. Of course this is very dependent on the economy as the performance of investments play a big roll on retirement. Edit:No i'm not REPO4SALE |
28% on the low side 33% on the high side, generally you want to be in that range.
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Originally Posted by Loki047
(Post 229716)
Net or Gross?
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Originally Posted by Mach929
(Post 229785)
28% on the low side 33% on the high side, generally you want to be in that range.
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I pay about 10% of household income toward the mortgage/taxes (1700sq ft). Could afford way more-just don't need anything bigger. I would rather see the extra money go into investments other than a house (although many would consider a house an investment), but that's just me.
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I hate you people...
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Originally Posted by Loki047
(Post 229875)
I hate you people...
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I pay 20% for rent in a 3 bedroom house with one roommate. However, all utilities are included, plus internet and premium cable. Can't be that deal around here.
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Loki, have you looked at the FHA mortgages?
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Originally Posted by y8s
(Post 229913)
Loki, have you looked at the FHA mortgages?
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If you're not putting 20% down, ask about LPMI; regular PMI is only tax deductible if the household income is less than $100k. Plus, if your credit score is excellent, you might even end up paying less per month with LPMI. I ended up saving $65/month plus extra tax benefits goign this route. Of course, this is a dumb idea if you plan to stay in the same house forever.
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I'm not trying to be rude but if you have to pay PMI then you need to save longer or buy a less expensive house.
FHA is how I could afford to buy my place. It's a great resource for the first time buyer. There is A LOT more paper work involved and few more inspection if memory serves me correctly however the interest rate was a full point and half lower. If a person is handy at all you really might want to consider buying a small apartment building like I did. If the place has people already on lease you can count 75% of that as income to qualify for the mortgage. Downside are there for sure but like anything you have to weigh them and decide if it's something you can live with. |
you can also get around PMI by having 2 loans.
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I'm only about 18% of net and I own. Maybee its time to get a place with a bigger garage.
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Originally Posted by Atlanta93LE
(Post 229981)
If you're not putting 20% down, ask about LPMI; regular PMI is only tax deductible if the household income is less than $100k. Plus, if your credit score is excellent, you might even end up paying less per month with LPMI. I ended up saving $65/month plus extra tax benefits goign this route. Of course, this is a dumb idea if you plan to stay in the same house forever.
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Originally Posted by Ben
(Post 229994)
you can also get around PMI by having 2 loans.
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Originally Posted by Loki047
(Post 230006)
I am most likely doing 5% down and pulling a separate loan, but LPMI wont work because of the household income. :vash:
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Originally Posted by MX5-4me
(Post 229992)
I'm not trying to be rude but if you have to pay PMI then you need to save longer or buy a less expensive house.
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Originally Posted by Atlanta93LE
(Post 230011)
Point taken. However, if you can buy a place where the PITI payment is roughly equivalent to the rent you pay anyway, it doesn't make any sense to continue to rent.
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Originally Posted by MX5-4me
(Post 229992)
I'm not trying to be rude but if you have to pay PMI then you need to save longer or buy a less expensive house.
In my particular situation, it worked out better for me to buy the house at 0 down with 80/20 loans. Even though I had been saving to put 20% down, and at the time was able to do so. But as Ben said, times they are a changin. |
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