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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 12:01 pm
(July 12, 2018 at 10:08 am)Neo-Scholastic Wrote: 0% All paid off. Plus I live well below my means.
I hate when I look at my mortgage payments, and seeing how much goes towards the principle, and how much goes to interest! I think that I may be able to speed things up a lot soon (I hope).
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 12:11 pm
(July 11, 2018 at 9:16 pm)Shell B Wrote: So, we're buying a house, and we're really nervous we will get in over our heads, so we're frantically trying to reassure ourselves by talking to other people about their experience with mortgages. If you're comfortable, can you tell us what your mortgage is compared to your income? If you're uncomfortable with actual numbers, would you be comfortable sharing what percentage your mortgage is of your net income and how comfortable you feel with it? Thanks!
-Sincerely, Freaked the Fuck Out
Mine was pretty much half when I started but its a repayment mortgage and now I'm almost finished.
You can fix ignorance, you can't fix stupid.
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 1:25 pm
(July 12, 2018 at 12:11 pm)downbeatplumb Wrote: (July 11, 2018 at 9:16 pm)Shell B Wrote: So, we're buying a house, and we're really nervous we will get in over our heads, so we're frantically trying to reassure ourselves by talking to other people about their experience with mortgages. If you're comfortable, can you tell us what your mortgage is compared to your income? If you're uncomfortable with actual numbers, would you be comfortable sharing what percentage your mortgage is of your net income and how comfortable you feel with it? Thanks!
-Sincerely, Freaked the Fuck Out
Mine was pretty much half when I started but its a repayment mortgage and now I'm almost finished.
How did you hold up when it was half?
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 1:27 pm
(July 12, 2018 at 11:59 am)Khemikal Wrote: If you found a place with a market value of 1.2mil and it was in foreclosure @300k....it would be hilariously easy to get a bank to extend you the credit...and you;d still be paying the same loan. Its just hard to arrange because they go so quick, quicker than loan officers tend to work.
I did something similar here. I bought 3600ft2 and two acres for 25k outright, and then got a loan to cover the adjacent agricultural properties also in foreclosure.
Yeah, I ain't paying the taxes on something like that in Massachusetts. Foreclosure auctions out here are a pain in the nuts too. I lack the patience and the tolerance of risk.
Our house isn't a mansion by any stretch. It's a middle-class family home in a rural area. It's got old-school charm and good bones. It's valued at more than we're paying for it, and we can grow into it. We'll see how it goes. If we can't afford to adopt kids still, we will rethink our position. Tibs needs kids.
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 1:51 pm
It's about 10% of my income now, but it's a 30-year mortgage and something of a fixer-upper and I'm not much of a fixer. It was about 15% of my income when I bought it 18 years ago.
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 2:18 pm
I'm at about 16% of net currently. With the second I took to turn $1100 in monthly payments into $515 and make some small repairs the house needed, I'm at 25%. Looking back, I probably shouldn't have taken the second, but that $1100 was killing me. Then again, the combined mortgages kill me every time we get the bust part of the boom and bust cycle in the oil and gas industry.
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 2:54 pm
(July 12, 2018 at 1:25 pm)Shell B Wrote: (July 12, 2018 at 12:11 pm)downbeatplumb Wrote: Mine was pretty much half when I started but its a repayment mortgage and now I'm almost finished.
How did you hold up when it was half?
We huddled under blankets in winter and spent next to nothing on food and the heating was something we contemplated using but mostly didnt. Baked beans on toast and noodles was what we ate. Didn't have a social life. I was very thin and windy. But that was only for a while.
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RE: What's Your Mortgage Compared To Your Income?
July 12, 2018 at 4:00 pm
(July 12, 2018 at 2:54 pm)downbeatplumb Wrote: (July 12, 2018 at 1:25 pm)Shell B Wrote: How did you hold up when it was half?
We huddled under blankets in winter and spent next to nothing on food and the heating was something we contemplated using but mostly didnt. Baked beans on toast and noodles was what we ate. Didn't have a social life. I was very thin and windy. But that was only for a while.
I'm a little scared of that, but I think we've budgeted well. We'll find out. The inspection is Monday, and we plan on going through with it. We're crazy kids!
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RE: What's Your Mortgage Compared To Your Income?
July 13, 2018 at 12:07 am
(July 12, 2018 at 9:23 am)Joods Wrote: IIRC, didn't you convert an old warehouse into a house? How many square feet is it?
Puny by warehouse standards. 40 by 80 foot print, some of it is two stories. But quite a lot of dirt on a lot for a warehouse.
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RE: What's Your Mortgage Compared To Your Income?
July 14, 2018 at 9:57 pm
(This post was last modified: July 14, 2018 at 10:08 pm by Huggy Bear.)
(July 11, 2018 at 9:39 pm)Shell B Wrote: Thanks, guys!
We've done a ton of math and have come to about 40% (or maybe less, since we didn't include bonuses, which are plentiful) of our net income, that's after 401K, all medical bills (HSA), insurance. It includes home insurance and taxes. It seems kind of high, but our debt to income ratio is okay. We qualify for more, but FUCK that. If we go 50K less, we only save a few hundred dollars.
Word of advice, it's the compound interest that gets you.
You'll end up paying twice the amount your house is worth in interest alone (30 year mortgage on a $300,000 house at 6% interest ends up being $647,000 out of pocket.), by simply paying that couple hundred bucks you'd save towards the principal you pay the house off in close to 15 years or less.
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