I ran into this article in the New York Times. Maybe it’s a sign of the “times” (no pun intended) but I find it quite interesting that we’ve moved so far from logic when making a home purchase. These “new rules” really aren’t new at all. They do, however, tend to bring the perspective closer to practical thinking.
THE EIGHT-HOUR RULE
One rule about all of these rules is that it’s unlikely that every one will apply to every circumstance. Individuals and their income streams are too varied, and real estate markets are themselves unique.
When all else fails, however, you can always fall back on the eight-hour test. Whatever the size of your mortgage, you have to be able to sleep soundly at night. So if an impending loan has you stretching for the Ambien, it’s a pretty good sign that the loan is a bit of a stretch as well.
http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html?em
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