$82,000/year to live comfortably in Denver.

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Originally Posted by NFATrustGuy

I'd say you're doing pretty well. Just looking at a bunch of approximate numbers….

IF:

House Cost: $300,000
Down Pmt: 20% = $60,000
Financing $240,000
Monthly Principle, Interest, Taxes & Insurance: ~$1300
Gross Pay: $84,000/yr = $7000/mo
Federal, State & FICA: 25%
Monthly Take Home: $5,250

Payment is 25% of the Take Home Pay

Back in the old days when I worked for the mortgage department at First National before going to law school, I think the accepted ratios were 28/36. Your mortgage PITI payment could be 28% of your GROSS pay and all your payments added together (including the mortgage, car, credit cards, student loans, etc.) could be 36% of your GROSS pay.

Personally, I wouldn't be comfortable spending that much on a mortgage, but I know a lotta people do just fine with it.

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i think the issue isn't so much about how much people spend on the mortgage as much as how much they spend on things like car loans, credit cards, etc. its the total of payments that gets out of control. if people can focus on one major debt to have its not such a big deal.

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Originally Posted by DFBrews

I am housing hunting in the metro area and it is a frenzyright now all the 200 ish level homes are gone so fast and the ones that last more than a week are overpriced. And if you look at what they where bought for less than a year ago usually then remodeled it is a 50k plus difference.

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I'm running into the same issue. I hate this market.

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Originally Posted by Madeinhb

I'm running into the same issue. I hate this market.

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Give it 6 - 8 months. The way opec is trying to put everyone out of the production business, combined with O's letting it happen. There will be plenty of $300K + houses coming down in price.

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Originally Posted by NFATrustGuy

Back in the old days when I worked for the mortgage department at First National before going to law school, I think the accepted ratios were 28/36. Your mortgage PITI payment could be 28% of your GROSS pay and all your payments added together (including the mortgage, car, credit cards, student loans, etc.) could be 36% of your GROSS pay.

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When I bought my current house, it was right at what I was getting from the AF for BAH, about 14% of my gross so right near 28% of my take hom.. Today, I think it's about 7% of my gross.

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Originally Posted by NFATrustGuy

Personally, I wouldn't be comfortable spending that much on a mortgage, but I know a lotta people do just fine with it.

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Yeah, I couldn't believe they let mortgages at 28% of gross. That was bad enough but the numbnuts who took out mortgages on houses based on 3% of gross are the major reason for the last economic downturn and the upcoming downturn. I said in 2007-2008 that there was very little wrong in American industry at that time but a whole lot wrong in American society and "culture" encouraging eternal indebtedness; I stand by those words today.

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Originally Posted by DFBrews

I am housing hunting in the metro area and it is a frenzyright now all the 200 ish level homes are gone so fast and the ones that last more than a week are overpriced. And if you look at what they where bought for less than a year ago usually then remodeled it is a 50k plus difference.

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300 is the new 200.

Side note, i'll sell you my house :)

I'd love to sell and move as my value has jumped up a ton since we bought 2.5 years ago. But then you have to dump it all into the new house to offset the amount you're buying the next house for. Granted, It's "free" money that inflated the value on my current home but I still can't justify it until I find a house that's a real value. Look at the assessor page for houses that are for sale and the houses are selling 25-40% higher than they've ever sold for. That is concerning to me. Add in the fact that the stock market is at 17k and something eventually has to give.

My hope is that when the next dip happens, I can still turn a decent profit on my house since it's in a majorly growing area. Then not pay some inflated price on the next home. Or find someone I know that wants to sell and is willing to offer me a fair price on it. $300k for a home that doesn't even have a 3 car garage? No way.

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Originally Posted by Dave_L

I'd love to sell and move as my value has jumped up a ton since we bought 2.5 years ago. But then you have to dump it all into the new house to offset the amount you're buying the next house for. Granted, It's "free" money that inflated the value on my current home but I still can't justify it until I find a house that's a real value. Look at the assessor page for houses that are for sale and the houses are selling 25-40% higher than they've ever sold for. That is concerning to me. Add in the fact that the stock market is at 17k and something eventually has to give.

My hope is that when the next dip happens, I can still turn a decent profit on my house since it's in a majorly growing area. Then not pay some inflated price on the next home. Or find someone I know that wants to sell and is willing to offer me a fair price on it. $300k for a home that doesn't even have a 3 car garage? No way.

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It all comes down to where you Want to live. That lifestyle & comfort level come with a price.

For what I make with a family of four I have seriously considered quitting my job a few times and getting on the gravy train with the EBT wheels!!!!

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Originally Posted by trlcavscout

For what I make with a family of four I have seriously considered quitting my job a few times and getting on the gravy train with the EBT wheels!!!!

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They'll fight for your right to buy pot with gov provided money, but I wonder if they'll cry if you buy ammo with it.

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Originally Posted by Dave

They'll fight for your right to buy pot with gov provided money, but I wonder if they'll cry if you buy ammo with it.

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Well I will do it like most people do, I will work for someone paying me under the table so I have ammo money, and then get the free insurance and food and stuff so I can get lobster and beer. It benefits the employer because he doesn't have to offer me Obama care to.