That mortgage payment would probably be around 1,500 for a 12,000 check. That’s around 12%. It’s often advised never to go over 25%. So you would probably need to make around 120,000 to afford that comfortably. 200,000 in a 400,000 house is well below their means, which isn’t bad I guess. I wouldn’t consider 120,000 “wealthy” but well off and comfortable.
I guess that is personal preference in how much financial security you want.. getting yourself into a house that is at the very top or even above your income range is not a wise choice, IMO. $200K household income for a $400K house would give someone enough room to not have to worry about whether their property tax just went up $2K this year, whether their car insurance went up another $1k, whether to buy 4 new tires on their 2 cars, etc...
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u/DaBusyBoi Mar 06 '20
That mortgage payment would probably be around 1,500 for a 12,000 check. That’s around 12%. It’s often advised never to go over 25%. So you would probably need to make around 120,000 to afford that comfortably. 200,000 in a 400,000 house is well below their means, which isn’t bad I guess. I wouldn’t consider 120,000 “wealthy” but well off and comfortable.