- Sep 30, 2007
- Reaction score
2X was always my rule of thumb.The old rule of thumb was your mortgage should be no more than 3x your gross yearly income...
And that's with interest rates below 8%.
Which is why I asked earlier - not so rhetorically - why 20% down with good credit is so wrong.That rule of thumb means I should make 200k per year to afford the home above...
I don't make any 200k per year.. but neither do a lot of the people who get qualified for these nutso mortgages.
If you can't afford it, you can't afford it.
Nothing "unfair" about it, it's simple facts.
If you can afford it - what's the issue?You gotta be insane to take on that kind of debt
How much do people spend on guitars?
This is a GOOD thing - if you have a fixed-rate mortgage.when interest rates have nowhere to go but up
(As you should, if you have a rate under 5%)
If you can afford it - you bet!and call that an investment!!