Zoom-boing
Platinum Member
Basically you can get financed for 2.5X your household income. My wife and I knew we wanted about a $750 payment. We got approved for $160,000 we said no thinks and got a small "starter" house for $105,000.
You sound like us. Bank approved us for way more than what we were comfortable paying. We looked down the road and knew that when kids came along we really wanted to be able to have me stay home with them. We opted for a smaller house, further up the road than planned. We also stayed there for longer than we planned and while I was still working full-time socked away as much as possible and paid more on the mortgage. It benefited us then, as well as when we bought this house 10 years ago.
You used you common sense rather than getting talked into something you didn't need. Once we get our house paid off we will either remodel because we really like the neighborhood or we will move to a bigger house with a bigger kitchen a famly room and theater /office room and a MUCH nicer master suite. I want to do a second floor addition above the half of the house above the garage but I thin it may be cost prohibitive.
Exactly. A lot of people hear 'you can afford xxx' and go with it, never stopping to think about the reality of actually living with a mortgage at that number and never consider downsizing in order to save money. Our mortgage will be paid off in a few years.