UnThreaded | Threaded | Whole Thread (38) | Ignore Thread Prev | Next
Author: IndyTom One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 128370  
Subject: Re: What % of one's income to devote to housing? Date: 1/19/2003 12:17 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Something that seems to get overlooked is that the ratio seems to forget about investing.

A freind of mine qulaified for a loan within $27% of his income. Of course, he is used to maxing out his 401K. Unfortunately, he did not take this into consideration until after closing. Even though he was qualified - he moved in - and found himself cash poor - and could not contribute to retirement the same amounts that he had enjoyed before.

In short - make sure you consider everything you want to do after buying your house. Were you planning on buying a new car? Invest in college savings and retirement accounts, etc.? These important items seem to be neglected when calculating these all-important ratios, and people may end up moving into their dream home and not being able to afford anything else.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (38) | Ignore Thread Prev | Next


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.