Anyone here good at budgeting?

Question

Please help me figure out how much of a mortage I can afford based on all our monthly expenses and bring home money. If you can please messege me and I will send you the numbers.

Answer 1

I'll answer that without even looking at your numbers.

To be comfortable, your mortgage should not exceed one third of your monthly income.

Some go as high as one half... but that usually snowballs and catches up with them. It can be done, but a budget needs to be made and stuck to.

Answer 2

A general rule is that you should

1) put 20% down,

2) have 6 months expenses covered in an emergency fund ($20,000 cash in the bank),

3) the payments for a 15 year fixed mortgage should be no more than 1/4 of your pay after-taxes.

4) No other debts (no credit cards, car loans, or studend loans)

With today's interest rates, that means your house (not mortgage) should be between 2 and 2 1/6 years salary before-taxes.

People who have gotten into trouble with their mortgage recently broke one (if not all) of the four rules.