Quote:
Originally Posted by nybbler
Gross is the usual benchmark. 40% gross is about the max the banks will accept with good credit. That's right where we were at when we bought my current house (including still carrying the old one with a mortgage and a maxed-out HELOC that covered the down payment)
Yeah, you're good (assuming the economy doesn't collapse again, but then we're all f-ed) even if your numbers are right. But with $10K in taxes, you're talking about a principal and interest of about $2300, which translates to a rate of 5.8%, which is way way too high. If your credit is good you should be able to get under 4% (possibly significantly under), total payment more like $2700 + insurance.
On taxes: first year interest is $16K, which is a nice deduction that applies even if you get hit by AMT, and is larger than the standard deduction.
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Hi! Thanks for your reply. Just as a few classifications; we were approved for a 4.0 for a 20 year fixed, but I don't have the numbers yet for a 30 year. Should be in that ballpark; not sure where 5.8% came from. I have a 719 credit score.
I have not computed the tax benefits yet of all this. Right now I have no kids and thus have 0 deductions (other than the personal). My tax rate is ~35% though, so every dollar that comes off my taxable income essentially gives me back .35. If I could take my house taxes of 10K off my taxable income, that is 3500$ or so, which means my taxes really only come out to 6500, etc.
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