MX5-4me

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

Mach929

iTrader: (3)

28% on the low side 33% on the high side, generally you want to be in that range.

kotomile

iTrader: (24)

Sorry, net.

Loki047

iTrader: (6)

Thats the rule of thumb for gross income. I was seeing what people were paying in reality.

mx5roadster

iTrader: (3)

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.

Loki047

iTrader: (6)

I hate you people...

TurboTim

iTrader: (9)

Yeah same here. The condo looks better every day I try to find something else affordable.

RotorNutFD3S

iTrader: (33)

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.

y8s

iTrader: (8)

Loki, have you looked at the FHA mortgages?

Loki047

iTrader: (6)

No havent even thought/looked into it. Is that the route your going?

Atlanta93LE

iTrader: (5)

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.

MX5-4me

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.

Ben

iTrader: (33)

you can also get around PMI by having 2 loans.

Stealth97

iTrader: (5)

I'm only about 18% of net and I own. Maybee its time to get a place with a bigger garage.

Loki047

iTrader: (6)

I am most likely doing 5% down and pulling a separate loan, but LPMI wont work because of the household income.

Atlanta93LE

iTrader: (5)

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.

Atlanta93LE

iTrader: (5)

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.

Atlanta93LE

iTrader: (5)

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.

MX5-4me

yes, good point to me renting is like throwing $$ in the trash. although for some folks it makes sense.

Ben

iTrader: (33)

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.