When you mention ‘after taxes’ when talking about mortgage interest,, don’t forget that you are itemizing and giving up the standard deduction.
There are many people with low loan amounts that may not benefit by itemizing. If the standard deduction is raised to $24K for a married couple, it will make less sense for many to itemize.
Paying interest IS paying interest.
Yes, maybe someday CD rates will be higher than mortgage rates again.
Unless one is a tax expert, I tell people to let the tax benefit (if any) be a bonus when buying a primary residence, don’t let it be a factor when deciding on buying a house.
To address the OP, a qualified borrower can be approved to borrow more than they should be comfortable borrowing, That’s how the system works…
. Having an 800 credit score OR putting 50% down doesn’t make the approval process any easier.
You jump through the same hoops as a 620 credit score with 3% down.
Approvals are based on approved monthly income and monthly debts on a credit report.
Many people have substantial expenses that are not on a credit report.
Loan qualifying doesn’t count utilities, medical expenses, gas, clothing, hobbies, sports, child care, food, entertainment ,vices , car insurance, life insurance, braces, car maintenance, payroll deductions etc
The more you make the more disposable income one should have so
saying that one should only buy a house worth X times their income is a very general statement.
