Comments on: An Analysis: Bit Off More Than He Could Chew

By: Money Links For 09-21-07: Death Special

Money Links For 09-21-07: Death Special — Fri, 21 Sep 2007 08:44:07 +0000

[…] An Analysis: Bit Off More Than He Could Chew by Mapgirl @ Mapgirl’s Fiscal Challenge. […]

By: Single Ma

Single Ma — Tue, 18 Sep 2007 00:29:55 +0000

I’m with ntguru, those numbers just don’t add up. I wonder if the editor for that article made a mistake.

By: ntguru

ntguru — Mon, 17 Sep 2007 17:46:46 +0000

MG, must be nice on the taxes! We actually live in an area that is desirable because its taxes are lower than those around it without any downsides!

What are your thoughts on the gross versus net income? I just don’t think it could be 70% of gross.

By: Mapgirl’s Fiscal Challenge / More Thoughts on Biting Off More Than He Could Chew

Sun, 16 Sep 2007 21:14:03 +0000

[…] As I reflect more and more on what happened to the guy in Maryland who can barely afford his housing costs as taxes and insurance costs rise, I am wondering how he got into this mess. […]

By: mapgirl

mapgirl — Sun, 16 Sep 2007 20:05:00 +0000

Ntguru - That’s funny you say that because MD has some of the highest property taxes in the DC area. I live in Virginia and I pay a lot less. I know that because my mortgage was written by a bank in MD, and their good faith estimate was double on the property taxes. My realtor thought the banker was plum crazy with those numbers.

CleverDude - I know you are pretty solid in your thinking. You and your wife did a smart gamble with your mortgage know that you and your wife were going to substantially increase your incomes within 3 years.

By: ntguru

ntguru — Sun, 16 Sep 2007 14:00:49 +0000

I know the article says 70% of GROSS income going to housing but is that even possible? I mean, wouldn’t various fed/state/local/FICA taxes be 25-30% of gross effectively leaving him with $0? Slicing it another way they usually said during the lax credit years that 3-4 times your income is biggest mortgage you could get; this guy would be at EIGHT times his income. I just don’t think this is possible folks!

I wonder if they meant 70% of NET income….which is still insane. That would peg his income around $60K which I think it a lot more plausible. That still puts his mortgage at more than 5 times income.

Finally, you guys have nice property taxes out there! We pay 50% more on a home worth substantially less than his.

By: Clever Dude

Clever Dude — Sun, 16 Sep 2007 03:55:19 +0000

4 years ago, I was about in this guy’s situation, but that was just my income. I also had Stacie’s income. We were around 6 figures combined, and we bought a 400k home. I’ve definitely pulled away in my salary, and Stacie has made marginal increases, but I can’t imagine buying our home with just my salary at the time. It would never have happened.

By: PiggyBankBlues

PiggyBankBlues — Sat, 15 Sep 2007 22:46:41 +0000

this is why i love math geeks mad props.

the article is profoundly disturbing. i don’t know how people get suckered into thinking they can afford the bigger house, and i really don’t get how the lenders thought the same thing!