Quote:
Originally Posted by maat55
You bought too much house
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Quote:
Originally Posted by JinCO
we chose a much less expensive home so that we could pay down our debt.
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JinCO - How much was your home? On an income of $240,000, 3 times that would be $720,000 which is one rule of thumb for affordability. Another rule of thumb is that no more than 28% of income should go to PITI. Do you fall within those guidelines? If so, I agree that the house is okay on your income (not that that was your question).
It sounds like you are doing just fine and living well below your means since you are both maxing out your 401k plans and paying an extra $20,000/year on your debt. That's $51,000/year going to savings on an income of $240,000. That's a savings rate of over 21% which I think is just fine.
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Steve
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