What's Your Mortgage Compared To Your Income?

[CapnAwesome]

I live in an RV and I make well under 10 grand a year. But I get 9 month long vacations. I recommend it to everyone.

[Shell B]

I live in an RV and I make well under 10 grand a year. But I get 9 month long vacations. I recommend it to everyone.

Sounds terrible. I could never fit enough books and art supplies in an RV. To each their own.

[Shell B]

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.

Sure, but we have extra to pay toward the principal anyway. That's very solid advice, though. I complete agree that you should, and I thoroughly plan to, pay down the principal as much as possible. We keep an abundant emergency savings that we are going to cram full again as soon as we're in the house, as we will have to make a dent in it to get into our home. Once that's done, the money that we are pushing into savings will go into the principal. It's significantly more than the couple hundred that's suggested to knock down the interest, so that's good. A lot will also go into increasing the value of the home. The ten-year plan is to sell the house for a profit and buy a significantly cheaper house outside of the absurdly expensive area we live in either outright or damn close to it. Given the extra space in the home that can be converted, I think we have a really good shot. Then again, I get nerves every other hour.