OK quick question. The rule of thumb that I've seen around here is don't buy a house worth more than 2-2.5x your annual income. So does this apply to the mortgage amount or house value?
Example: House price = 650K. After 20% downpayment, the mortgage amount is 520K. For an income of 250K/yr the mortgage amount is less than 2.5x annual income, but the price of the house is a little bit above 2.5x the annual income.
Is this too much house? Or would it fit within our rule of thumb?
Example: House price = 650K. After 20% downpayment, the mortgage amount is 520K. For an income of 250K/yr the mortgage amount is less than 2.5x annual income, but the price of the house is a little bit above 2.5x the annual income.
Is this too much house? Or would it fit within our rule of thumb?
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