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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 128887

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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