We are purchasing our second home. Our first home we purchased for $50,000. During this time we were able to save up some money and make some fixes on our home. We sold our house last week and living in a month to month rental right now. We found the house we really really like! Here is what ib want to know from a non biased source. Particularly if you work in finance. My husband and I have a combined income of 120,000 annually. That is $10,000 per month on pre tax income. After taxes we take home about $6,600/month. Give or take. Our only debt is our college loans which equal. About 975/month. And unfortunately our credit card we used for our wedding related expenses that we pay 100/month on. The rest of money has all going to savings to pay for large down payment. Anyway. The house we are looking at is listed at 280,000. We got them down to 270,000. We were approved for a loan of $500,000. Yikes! Bank estimated our monthly payments on this house to be about 1,800/month. We feel this is OK because it is about 18% of our pre tax income. Every expert suggests to stay around 28% of pretax income. Is this a reasonable price if we want to stay conservative?! The reason the monthly payments at so high is the taxes. It is on 10 acres of land with water front property. Are we being Conservative enough? My lender says YES! I'm worried bankers will say anything to get your money. Suggestions?
Read more: Mortgage payment safe for us?
