Comments on: How much to spend on a house – Part II http://7million7years.com/2008/09/13/how-much-to-spend-on-a-house-part-ii/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: AJC http://7million7years.com/2008/09/13/how-much-to-spend-on-a-house-part-ii/comment-page-1/#comment-1722 AJC Sun, 14 Sep 2008 04:36:12 +0000 http://7million7years.wordpress.com/?p=438#comment-1722 @ Scott - Masterson (at least in the book that I read) seems to only give half the story: the 25% of net income (hence debt) part; you need to add the 20% rule to determine equity, as well. It's great that you recognized that these are MAXIMUMS not recommendations :) @ Scott – Masterson (at least in the book that I read) seems to only give half the story: the 25% of net income (hence debt) part; you need to add the 20% rule to determine equity, as well. It’s great that you recognized that these are MAXIMUMS not recommendations :)

]]> By: Scott http://7million7years.com/2008/09/13/how-much-to-spend-on-a-house-part-ii/comment-page-1/#comment-1721 Scott Sat, 13 Sep 2008 13:12:29 +0000 http://7million7years.wordpress.com/?p=438#comment-1721 Great post. We used the same rule of thumb when we bought our first house using Masterson's ideas, however, we opted for using only around 12% of our net income toward mortgage payments because of my HUGE student loan debt and lots of dumb consumer debt. The great thing about doing this is that that home is now a rental for us just as you said, and our new farm is only 18% of our take home pay and the consumer debt is about gone, so now the wealth train is gaining steam! Great post. We used the same rule of thumb when we bought our first house using Masterson’s ideas, however, we opted for using only around 12% of our net income toward mortgage payments because of my HUGE student loan debt and lots of dumb consumer debt. The great thing about doing this is that that home is now a rental for us just as you said, and our new farm is only 18% of our take home pay and the consumer debt is about gone, so now the wealth train is gaining steam!

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