Amount of Mortgage Payment?

Our mortgage/taxes/insur were 17% of our 1st year gross. We were pretty much starting from scratch as far as furnishings were concerned, so that is just what we felt comfortable with at the time. Unless you get hit with the AMT, you should be able to deduct all of your mortgage interest on your taxes.

[houseelf]

Our home is about 18%of our net income as residents. I couldn't BELIEVE what we were approved for, however, an additional 80,000 ! We live in the midwest, yet house prices are higher than most other midwest locales. I think that the median housing price is 220,000 in the Twin Cities.

It should be noted that although we have kept our housing costs low, we have unusual residency expenses. 25% of our net income pays student loans which are no longer deferrable (mine and a couple of private ones) and we send our kid to a private school in which we really can't afford if I'm totally honest.

Kelly

Mortgage and taxes are 7% of our Gross income (my job/dh's fellowship), no consumer or car debt, after mass repayment pretty managable student loan debt (around 60k).

Part of the reason we kept this so low is that nice houses (not mansion, just nice) in our area are 600-800k. We bought a wonderful condo in a great neighborhood and are saving for a house. Luckily while housing prices suck here the appreciation on whatever you currently own is very good.

To the OP, I don't think the percentage of income you name is out of line per se. My only concern - - and I am curious how others addressed this - - is that the first year of a new job is inherently uncertain. I recently read that 40% of new docs leave their first job within two years!! So, my thought has always been to hold off for six months or a year on buying or to buy something that you can resell pretty easily (generally at the lower end of prices; high end homes usually are tougher to resell).

Good luck!

Kelly, that sounds about right for here too. Its almost impossible to find something under $180K that doesn't need mondo updates, and less than that you are dealing with prewar, unmaintained 1000sq. footers that look like that means pre Civil war

[JaneDoe]

Mortgage and taxes are 7% of our Gross income (my job/dh's fellowship), no consumer or car debt, after mass repayment pretty managable student loan debt (around 60k).

Part of the reason we kept this so low is that nice houses (not mansion, just nice) in our area are 600-800k. We bought a wonderful condo in a great neighborhood and are saving for a house. Luckily while housing prices suck here the appreciation on whatever you currently own is very good.

To the OP, I don't think the percentage of income you name is out of line per se. My only concern - - and I am curious how others addressed this - - is that the first year of a new job is inherently uncertain. I recently read that 40% of new docs leave their first job within two years!! So, my thought has always been to hold off for six months or a year on buying or to buy something that you can resell pretty easily (generally at the lower end of prices; high end homes usually are tougher to resell).

Good luck!

You're absolutely right about a new job having uncertainties. I guess it's a risk we're willing to take. Dh's new job is in his home town. We're moving to our home state after being across the country for nearly 8 years. We really hope to stay there for the long haul.