Originally Posted by
OpieTaylor
What would you say is a conservative/liberal debt to income ratio.
I have read banks generally don’t like to lend more than 40% of gross income tied up in payments.
People balk when Dave Ramsey says 25% of net at 15 years for an home and 0 other debt.
Is it reasonable for a mid age pilot earning 25k-35k a month gross to have 10k-14k a month tied up in payments to a bank for toys or a mortgage or vacation home.
In my case once off the B scale at Delta I was probably never near 40% of gross. The B scale years I probably exceeded it. My main home we paid cash for from equity of our prior homes. The vacation house I could pay off and have the cash set aside but the money market account is paying 5.11 as of a month ago. Mortgage rate is far less not to mention the property has doubled in value since 2018. I can thank all the Floridians fleeing their summer heat for that!
How much money you want tied up is really a personal choice. As long as I could fully fund my tax deferred options and save another 5% I did not care. During the bankruptcy I sold one of my favorite toys but could have kept it. Wife wanted the cash in the bank.