DTI ratios are generally done using gross income because peoples’ deductions and taxes vary widely depending on their circumstances. Using gross income, his DTI is 26%.
OP, if you have kids requiring expensive childcare, this is not doable. Otherwise, it will be doable but a bit tight. I think the odds are that mortgage rates will come down in the next few years, though, so just be ready to jump on a refinance whenever it makes sense, and that will free up some more room in the budget.
whynot19734 t1_jadyitr wrote
Reply to comment by iranisculpable in I can’t wrap my head around if I can actually afford to buy a home by [deleted]
DTI ratios are generally done using gross income because peoples’ deductions and taxes vary widely depending on their circumstances. Using gross income, his DTI is 26%.
OP, if you have kids requiring expensive childcare, this is not doable. Otherwise, it will be doable but a bit tight. I think the odds are that mortgage rates will come down in the next few years, though, so just be ready to jump on a refinance whenever it makes sense, and that will free up some more room in the budget.