A bit personal I know…
My husband and I are struggling to figure out if the house we’re looking at is within reach for us.
We’ve been APPROVED for a $ 200,000 mortgage (with 20% down—we plan to put a bit more). However, we know that that isn’t necessarily a guideline to go by.
I’ve read that a certain percentage of the monthly income should go to housing. But with these articles/charts I’ve researched they include a lot of things we won’t have (car payments, water bills, cable, high entertainment costs, etc). Please keep in mind we live in a rural area.
I’m a saver and a bargainer and this is purchase would be a bit extravagant compared to our usual purchases. Unfortunately, it’s also the biggest purchase. This home (including mortgage, taxes, insurance) would take about 40% of our monthly income. On paper (with our normal bills-gas, food, electric, etc) it looks good. But with this being out of our comfort zone it’s hard to take the leap.
So…what percentage of your monthly income do you spend? Are you comfortable? I know it’s personal but I think it would be easier to hear others stories.