- posted 9 years ago
We will be buying a second, winter home for when my wife retires in two years. I haven't found a formula for how much mortgage we can afford in our case. Those I found are applicable to still working couples with less assets; the 28% of income rule doesn't seem reasonable when net worth far exceeds the mortgage.
Assume, for instance, in round numbers,
$2M net assets $500K of that is real estate $100,000/yr income from all sources no debt 5% to 6% mortgage rate
We have been targeting a $500K house with a $400K mortgage but subject to change.
The second home will be outside the US with southern Europe or Central America the leading contenders. Does that matter?