When buying a house, how much is too much to take out in a mortgage?

I think you should evaluate a lot of things in this decision . To much for you is not to much for a different guy. Thats why you need to consult an adviser . Calculate your income , your spending the mortgage interest rate and many other things. Yedda is not a place to list all you personal details. So good luck with the professionals at your bank.

I would start with what your mortgage broker or lender says you qualify for. Be sure the payment includes taxes and insurance. I would than take this monthly payment and put it into a monthly budget, anticipation any changes (car, life ins., etc.) in the forseeable future. Don't forget to budget for savings. Then step back and consider whether this payment (which will tell you how much home and mortgage you need ) is something you can handle in emergencies. Adjust the home price until you feel comfortable. Don't be pressured by Realtors, mortgage brokers, friends, etc. to buy more than you feel comfortable with. Good luck.

Ron

Sell A Note Guy

They used to say one weeks pay for the morgage; boy is that out of date. Now they will allow a payment equal to up to 40 or 42 per cent of you pay for the month. More than that will likely not get approved. There are many variables; how much credit card debt, how many mouths to feed, other unusual debts, carelesss type debts (gambling), credit rating, etc, that effects what you can buy. Don't buy more than you need; consider taxes, insuranace, upkeep, utilities, and things that are not just the house payment. A good broker will help you a lot. Too much is more than you need or more than you can afford to pay without straining your budget too tightly so you  can't enjoy life.

Look at two things first in evaluating the purchase of a home:

1.  Your current family and how many persons you can foresee in eight years.

2.  Your current income/home value ratio, and how much you anticipate earning in that same eight years.

Few people live out a 30-year mortgage: it isn't expected and shouldn't be.  However, in that 8 years, you will have paid it down by 21%.  Most people have kids when they consider their first home, and want for the stability (and cost control) that owning a home will bring them. 

There is a catch, and an advantage: leverage. 

In eight years, your family will change.  More often than not, you will have kids and they will want a room.  Will that 2-bedroom house accommodate you, your wife, two boys and two girls?  Or might you plan ahead and consider a four-bedroom house even if it is more money, hoping that your earnings will increase with the size of your family?

Nothing is certain in life. 

Now, if you have nineteen kids, and two bedrooms, consider enlisting in the Foreign Legion . . ..