How Much House Can We Afford?

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[abrahamflores]

Dave should open his own home construction company and build $200k 1500sq ft homes to help first time homebuyers if he truly believes 15 year mortgage is the only way to go.

[jasondenton]

As a random dude on the Internet, I recommend a 30 year mortgage so you can pay it off sooner but have less risk if shtf and I will pay it normal in bad times, and pay it heavy in good times. But I have the drive to stay on it.

[jaylenjenkins]

Even if he 450k down on a 700k it will still be more then 25% of his take home pay with a 15 year mortgage

[blackvcobra]

It is now essentially impossible to buy anything even "decent" with 25% of takehome pay on a 15 year mortgage.

[timothyrosman]

Taxes, insurance, and maintenance on that $750k house is going to eat this guys $150k alive

[GunGlutton]

Whatever the bank approves you for go with 50% less of that

[mikebutkevich]

We’re paying off our place next year. Under 10 years. Debt free coming soon

[mjwmontgomery]

Stay debt free. I am in a similar situation. Very reluctant to get back into debt

[WewLaddie]

Ramsey out of touch with reality with this 15 year mortgage meme.

You can always do 30 year and pay it off quickly. That's what many people do.

[macneoh]

I can't afford a 1 bedroom apartment on 25% of my take home 😫

[Mavryck_Tha_Myghty]

What is wrong with committing to making double payments on a 30-year fixed mortgage instead of the 15? Theoretically, one should have that paid off in the same timeframe, right?

[paulinoaz]

He makes 150k and has no mortgage payment but can only save up 20-40k per year? He should be saving up a lot more then that each year since he has no mortgage payment.

[jackmaddesty]

What if people start asking questions like: How much house do we really need instead of how much can we afford? The same with cars etc… Then you all could eat something else than rice and beans(Unless you just LOVE rice and beans offcourse)

[shanisha]

150k and your looking at a house that cost $750k??? This man sounds crazy!

[JohnwesleyA]

Make an extra payment each year and pay a little extra each month. What I'm doing on my 30 year.

[Capybarainahumansuit]

This is rough. I just dont make enough to justify paying off a home in sub 15 years. Working on my car while renting now. Stuff comes up etc lol. But working on it.

[MrOfficer]

I’m just fine with my 30 year mortgage.

[johndone]

30 years is the way to go, mortgage is the cheapest money u can use with the longest time to repay

[robertfrank]

Definitely do not buy at $750k. The home price is only the first significant issue. Going from $350k to $500k is already a very good sized move up. He can pay that off in a year or two and way less upkeep and taxes. It isn’t worth the huge setback the $750k house would be.

[pj]

28% of gross income, including taxes, insurance, principal, interest.