House cost 2.5X annual salary or 42% month income? need help

[barkley]

i agree with those that say to buy what you can comfortably afford, and i would further suggest, that when you look at crunching numbers you take into consideration what your income might be if (god forbid) something happened where you could'nt work for an extended period of time due to an illness or injury. in a single income household this is a very important consideration (and speaking from personal experience-it's not always possible for the second parent to go out and get a job to make up income that's lost, it can be an issue of the job market that prevents it or the need for that person to stay at home a provide care for the injured/ill spouse who absolutly can't be caring for the kids).

to that end-look to what kind of income you would have with a long term disability policy (and if your employer does'nt provide one i STRONGLY suggest getting one on your own) and take that into consideration when determining what you would be comfortable with re. a house payment.


p.s. one of the greatest gifts you can give your children (and your wife for that matter) is education and experience in budgeting. you cannot imagine the number of women with children i encountered through social services that had tragic situations due to the loss of the dh/df and they continued spending without regard to their new financial circumstances until they had to resort to public assistance.

 

[kellyg403]

I agree with everyone, smaller house, better, more affordable payments = more relaxing life style. There was a time in my life I wanted the big house with all the perks. But, over time *I* have changed. I like the opportunity to take vacations and make memories with the kids, shop for the grandbabies etc. and still have a little in savings for a rainy day. I really wouldn't or didn't feel this way in my 20's and 30's and was house poor for a little while there trying to have my dream house. But, with the way things are going in my little area I am not even sure its possible. Taxes and insurance went up so much in the last year my house payment/with taxes, insurance has gone up roughly 300 a month. In ONE year. If it werent for the smaller house payment to begin with I don't know that we wouldn't be looking to move to a different area.

I say to always remember...taxes and insurance will go up. Having a VA loan with no down payment (like we have) means your taxes/insurance will be lumped in your monthly mortgage payment for awhile. Go smaller. You never know when there will be local tax hikes, insurance premiums will go up etc. This changes the outlook of your mortgage payment. Its never going to stay the same.

Kelly

 

[DMickey28]

So you only have 11 more days until you guys can be together again? Hurray! Hang in there.

Yup ... we are almost done. Can't wait ... move in three weeks from this past week!