That's less than 5x yearly earnings. NOT unaffordable, but they won't have much room in the budget for anything else. A mortgage of $150k, or less would have been FAR more responsible. They should have rented and worked on boosting their income before buying a house. Sucks for them now, because they won't be able to easily move and get better jobs in other places if they should find any.
If they had bene smart and paid for a $75,000 house they could easily afford more in life instead of barely getting by. They would then owe nothing and then be able to enjoy the fruits of their work a lot more easily. They would have more security too and for the life of me, they do not need a $230,000 dollar house.
You are correct. Bottom line is there’s no wiggle room. They are one hiccup away from default or worse.
When I bought my first house, the rule of thumb was 2x your yearly income. I think that this is still a good idea.
I always thought your housing costs should never go above what you make in 2.5 years?
Yep. I’m 46 and have never bought a home. I like to know I can bail if I have to.