Comments on: Mortgages for a Young Borrower

By: Erick Brunet

Erick Brunet — Mon, 07 Sep 2015 08:34:59 +0000

Thank you for sharing. It’s very usefull. Hope to hear more from you.

By: Polly

Polly — Thu, 15 Nov 2012 16:53:04 +0000

Very well said post! I agree with the margin too but it’ll surely help if you can put more than 20% for the down payment if you can. If you have the funds, always pay your mortgage in advance or more than what you need to pay monthly and always have emergency funds that you can use in times of needs. Every mortgage owner should really apply your tips and I’m sure foreclosure problems won’t be so rampant after a few years.

By: Average Joe

Average Joe — Mon, 08 Oct 2012 21:45:39 +0000

In reply to David@SkepticFinance. Great points, David. Go above 33% at your own risk. If it were me? ....I'd look closer at 25% also. The sad news is that this guest post exposes the real issue: there are still too many people who would accept the 40% the banks will hand out.

By: David@SkepticFinance

David@SkepticFinance — Mon, 08 Oct 2012 21:38:48 +0000

I'm with Roshawn & Lance, 33% seems high. Dave Ramsey recommends 25% on a 15 year fixed (I realize not everybody likes his advice). Personally we are at about 18% and love having the extra margin. Our house is on the small end, but more than meets our needs and we know that the extra money we're saving will make moving up to the house we really want all that much more affordable. Call me old school, but I think 20% down should be a requirement. Nobody needs a house, although a lot of people want one. I've heard too many stories of people who buy their dream house and the payment is too high so they can't afford to do anything outside their ~~dream~~ house. When I wen't to get my pre-approval, the bank would have given me up to about 40% of my income, had I spent that I would be regretting it now.

By: Mortgages for a Young Borrower – The Free Financial Advisor | Mortgage

Sat, 06 Oct 2012 15:15:39 +0000

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By: Lance @ Money Life and More

Lance @ Money Life and More — Sat, 06 Oct 2012 14:37:46 +0000

I’m with Roshawn and say go less than 33%. I’m less than than 15%! Having that extra 18+% is amazing but I agree all people can’t do this. We were extremely lucky 🙂

By: Roshawn @ Watson Inc

Roshawn @ Watson Inc — Sat, 06 Oct 2012 12:37:16 +0000

In reply to Roshawn @ Watson Inc. I forgot to say great post on the basics :-)

By: Roshawn @ Watson Inc

Roshawn @ Watson Inc — Sat, 06 Oct 2012 12:36:28 +0000

“This is perhaps the most important thing a young borrower should understand. Your monthly mortgage payment should never exceed 33% of your monthly bring home pay.”

This is pretty standard rule of thumb. Personally, I would prefer a more stringent criteria, but that has to do with risk tolerance.