[quote=jameswenn][quote=beanmaestro]I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)
25% taxes
35% savings
15% rent
25% other expenses
Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.[/quote]
If you use that break down, once you go to 50% (35% savings + 15% rent) for a home payment, you don’t have any savings, i think 35% for housing is a safer number[/quote]
But you forgot taxes. Your taxes will be reduced in that scenario, so it might be more like …
20 % taxes
10% savings
50% Housing
25% other expenses
Though I would not advocate spending that much on housing.
