Quote:
Originally Posted by OkieSnuffBox
Our mortgage payment is about 1/9 of our monthly take home. The banks say we could do 1/3 of our gross, but that's just stupid.
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The monthly payments on that hypothetical $700K house above was more than I net in a month! I'm currently paying about 1/2 of my monthly net to pay off the mortgage on our modest 2BR house in another 2.5 years, which probably comes out near the 1/3 gross suggestion.
My grandparents' post-war home was financed with a 20-year mortgage, which seems to have been common back then but is no longer readily available. Looking back, we'll be paid off in 20 years so it may be something for the finance market to ponder.
(Disclaimer, we started out with a 30-year ARM that was so good for us that the bank wanted out of the deal, and re-financed it into a 15-year fixed at 2.75% with only a minimal increase in the monthly payment amount....)