Jun 16, 2022Liked by Daniel May, CFP®

“ you know our rule of thumb for total spending on a home is to keep it below 25% of your gross income”

Curious on this, why do you guys make this a percentage of your gross? Shouldn’t this be on take home pay, since you make mortgage payments using after tax dollars? Sure, a counter could be “interest is deductible”, but on a fixed rate mortgage you will eventually reach a point where the majority of the payment goes to principal, at which point you can’t depend on the interest deduction.

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