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

[tmckay2]

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.

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.