Quote:
Originally Posted by gladaki
well may be its a less mortgage  ...His house is close to 300k$. May be he not showing me what up is sleeve. Any way my point is he just got the job n end up buying the house.  ... |
Uh, I think your calculation's a little off.
Cost of house is $300K
5% Down is $15K
95% Mortgage is $285K
Run that through a mortgage calculator using 3.5% fixed on 25 years, and it comes up to roughly $660 biweekly payments.
Your friend who makes $75K annually gross should still take in roughly $50K net. Divide that by 26 pay periods, and it's around $1,900 net a paycheque. $660/$1900 is roughly 35%, not 70%.