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Personal Finances / Buying or Selling a Home
|Subject: Re: questions on getting a mortgage||Date: 2/27/2000 9:31 PM|
|Author: synec||Number: 9341 of 128403|
According to "The Millionaire Mind," if you want to be financially independent someday, your mortgage should not be larger than two times your yearly income. It makes sense.
Who/What is "The Millionaire Mind"?
Alas, that calculation of a 2*income mortgage wouldn't get us much in the NYC area (and that's probably true for people in a lot of other areas as well). We would have never bought a home if we worked with that figure. We're at about 2.4*income for our mortgage, which I thought was rather conservative since we borrowed a lot less than we qualified for.
True, money is tight, and I don't like to think about what a reduction in our income would do to our finances. BUT, I cheered myself up recently by doing an estimate on our taxes for 2000. The tax savings brings our monthly payments within $150 of our former rent. In exchange, we've got a much nicer place to live and we're building equity.
I think it's worth it.
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