Taking out a mortgage 2x less than my income

[FalconheadWest]

Originally Posted by jerseygal4u

I thought that the reason the housing market is the way it is because people borrowed too much,meaning someone thought it was wise to lend 250,000 to someone making 50,000.

Who said someone could buy 5 x's their income? Don't go making things up that no one said. At $50k, a house in the $170-180k price point is fairly modest as they still have to be well below 50% debt as mentioned above. That still leaves you significant money for savings and fun and entertaining as the debt includes the other things I already mentioned like car payment, credit card and student loans, on the average amounts for the average person.

[davebarnes]

Originally Posted by piyf

2 words, Credit Union.

We paid cash for our house.
Then we wanted furniture and landscaping RIGHT NOW.
So, we got a $20K mortgage from our credit union. 3.5%/5 years at ZERO cost.

[jerseygal4u]

Originally Posted by FalconheadWest

Who said someone could buy 5 x's their income? Don't go making things up that no one said. At $50k, a house in the $170-180k price point is fairly modest as they still have to be well below 50% debt as mentioned above. That still leaves you significant money for savings and fun and entertaining as the debt includes the other things I already mentioned like car payment, credit card and student loans, on the average amounts for the average person.

Sorry,my sister makes that much and still has a hard time making ends meet,and she doesn't have a lot of debt.
But I suspect Nj property taxes are half of her monthly house payment.(180,000. Cost of home)
monthly mortgage payment: $800,plus 700 per month for property tax.