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Old 03-18-2008, 07:19 PM   #41
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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 Iím 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
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Old 03-18-2008, 07:30 PM   #42
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28% on the low side 33% on the high side, generally you want to be in that range.
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Old 03-18-2008, 07:45 PM   #43
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Net or Gross?
Sorry, net.
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Old 03-18-2008, 08:49 PM   #44
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28% on the low side 33% on the high side, generally you want to be in that range.
Thats the rule of thumb for gross income. I was seeing what people were paying in reality.
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Old 03-18-2008, 11:31 PM   #45
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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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Old 03-18-2008, 11:45 PM   #46
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I hate you people...
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Old 03-18-2008, 11:49 PM   #47
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I hate you people...
Yeah same here. The condo looks better every day I try to find something else affordable.
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Old 03-18-2008, 11:56 PM   #48
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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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Old 03-19-2008, 12:35 AM   #49
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Loki, have you looked at the FHA mortgages?
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Old 03-19-2008, 09:57 AM   #50
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Loki, have you looked at the FHA mortgages?
No havent even thought/looked into it. Is that the route your going?
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Old 03-19-2008, 10:06 AM   #51
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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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Old 03-19-2008, 10:31 AM   #52
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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.
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Old 03-19-2008, 10:33 AM   #53
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you can also get around PMI by having 2 loans.
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Old 03-19-2008, 10:59 AM   #54
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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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Old 03-19-2008, 11:07 AM   #55
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Originally Posted by Atlanta93LE View Post
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.
I am most likely doing 5% down and pulling a separate loan, but LPMI wont work because of the household income.
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Old 03-19-2008, 11:08 AM   #56
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you can also get around PMI by having 2 loans.
Yeah...I think that was a better idea when you were buying than when I did. I looked into it, and it would have been WAY more expensive than what I ended up with.
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Old 03-19-2008, 11:09 AM   #57
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I am most likely doing 5% down and pulling a separate loan, but LPMI wont work because of the household income.
Perhaps you misunderstood me; normal PMI is only tax deductible if the income is less than $100k. LPMI is deductible regardless of income, because it manifests itself as a slightly higher interest rate.
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Old 03-19-2008, 11:11 AM   #58
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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.
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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Old 03-19-2008, 11:14 AM   #59
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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.
yes, good point to me renting is like throwing $$ in the trash. although for some folks it makes sense.
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Old 03-19-2008, 11:17 AM   #60
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Quote:
Originally Posted by MX5-4me View Post
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.
I'm also going to disagree. 20% down is a tough/impossible for most people, and considering the financial benefits of ownership, it can be advantageous to buy instead of rent.

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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