The fucked part is to buy a house, there’s a debt income limit because nobody thinks you can afford the payments otherwise. That limit is much lower than 2/3, a bit under 1/2 when I bought (and we were forced to buy points to lower interest to get the payment there, which could have been down-payment instead).
I was amazed how much “financial advisers” claim I can afford to pay for things like housing. Like you are absolutely nuts that I’m going to pay 50% of my income just on a place to sleep.
We manage at 50%, but we don’t have car payments or student loans and the alternative, renting, is much higher. With a mortgage, you also get equity and pay down principle, so it’s not just a place to sleep. It’s like 25% to bank and 25% into nonliquid savings.
Renting at 50% or higher is a full loss, though. And honestly, if you have plans to travel, have kids, or just expensive hobbies, it really eats into your ability to fucking live your life.
The fucked part is to buy a house, there’s a debt income limit because nobody thinks you can afford the payments otherwise. That limit is much lower than 2/3, a bit under 1/2 when I bought (and we were forced to buy points to lower interest to get the payment there, which could have been down-payment instead).
It’s all very fucked.
I was amazed how much “financial advisers” claim I can afford to pay for things like housing. Like you are absolutely nuts that I’m going to pay 50% of my income just on a place to sleep.
We manage at 50%, but we don’t have car payments or student loans and the alternative, renting, is much higher. With a mortgage, you also get equity and pay down principle, so it’s not just a place to sleep. It’s like 25% to bank and 25% into nonliquid savings.
Renting at 50% or higher is a full loss, though. And honestly, if you have plans to travel, have kids, or just expensive hobbies, it really eats into your ability to fucking live your life.