Dear BHs,
I've seen various guidelines on how much house a couple can afford based on household income. The common understanding is that total monthly payments (mortgage, property tax, HOA, P&C insurance) should ideally be less than 25% of gross household income.
Are there any best practices from the BH community on how much house one can afford based on age and percentage of net worth?
We're in our mid-30s, living in a less desirable school district, and expecting our first child. I understand the need for a larger home when kids are under 18, but not necessarily when we're 60 years old. We're also facing a dilemma between purchasing a bigger house and allocating to index funds (401k, Roth IRA, HSA, taxable accounts).
I've seen various guidelines on how much house a couple can afford based on household income. The common understanding is that total monthly payments (mortgage, property tax, HOA, P&C insurance) should ideally be less than 25% of gross household income.
Are there any best practices from the BH community on how much house one can afford based on age and percentage of net worth?
We're in our mid-30s, living in a less desirable school district, and expecting our first child. I understand the need for a larger home when kids are under 18, but not necessarily when we're 60 years old. We're also facing a dilemma between purchasing a bigger house and allocating to index funds (401k, Roth IRA, HSA, taxable accounts).
Statistics: Posted by mander75 — Sat Oct 05, 2024 6:03 pm — Replies 14 — Views 836