And even though Martin can afford House # technically2 and Teresa can theoretically pay for home # 3, both of those may decide to not ever. If Martin waits another 12 months to buy, he is able to utilize a few of his high income to truly save for a bigger advance payment. Teresa might want to find a somewhat cheaper home so she’s maybe not right at that optimum of having to pay 36% of her income that is pre-tax toward.
The issue is that many people think the solution to “How much home may I pay for with my wage? ” is the identical whilst the reply to “ just What size home loan do we be eligible for? (more…)