what % of your salary goes towards house payments?

[fLum0x]

The recent thing i heard was people should spend between 25-33% of your annual income. For example, if you make a combined 100k between you and you SO a year...

0.25*100,000 = 25,000
25,000/12 = 2,083.33

0.33*100,000 = 33,000
33,000/12 = 2,750.00

This meaning you should spend between $2,083 and $2,750 on everything for your house/condo a month. Assuming my math is right, you would be getting about $5,500 a month after taxes between the 2 of you. Does this sound right?

Where do you guys/gals stand compared in percentage?

 

[dquan97]

about 40%

 

[spidey07]

That sounds way too high and way too much house.

An easy rule is twice your gross salary for the price of the house, but that is conservative and allows for greater wealth building activities.

 

[aircooled]

Originally posted by: dquan97
about 40%

me too if not a little more.

 

[vi edit]

15% currently. Looking to refinance from a 30 year fixed to a 15 year (only one year into the 30 year) and that will take it up to 20% of gross income.

 

[Capt Caveman]

40% but live in the city and walk to work.

 

[Kwaipie]

combined income is $115,000 gross
housing (including insurance, etc) $1900
Roughly 20%

 

[xochi]

16.25% for me.

 

[hanoverphist]

14%

 

[FP]

25%

2x your annual income as a general rule for total cost of a house would be impossible in CA.

 

[biggestmuff]

17%

 

[NuclearNed]

I just bought a new house, so at the start of October I'll be paying 2 payments...

...so around 50%, maybe even 60%...

It will be a wonderful day when the old house sells.

 

[SuperFreaky]

40% and we still usually manage to have another 25% left over at the end of the month...

 

[kranky]

Originally posted by: binister
25%

2x your annual income as a general rule for total cost of a house would be impossible in CA.

Don't worry, things are definitely headed that way.

 

[dullard]

Me: Annually I spend 20% of pre-tax income or 29% of post-tax income on my house. This includes mortgage interest, mortgage premium, real estate taxes, and insurance. But it doesn't include any other house related expenses.

My house was 2.5 times my annual salary (pre-tax). I wouldn't want it any other way myself.

 

[fLum0x]

Originally posted by: spidey07
That sounds way too high and way too much house.

An easy rule is twice your gross salary for the price of the house, but that is conservative and allows for greater wealth building activities.

the amount counts as everything for the home. including insurance and everything. That being the case, at $2,500 a month, it would be about a $2,000-$2,100 house payment and the rest towards insurance and such. $2,100 a month for a house is something like a $315,000 house.

Now given your scenario...

The rough gross of 100k, lets say is 70k. That amount multiplied times 2 is only $140,000. That is a DRASTIC difference. I understand you want to own the house, not the house to own you, but that seems very conservative for someone making 100k a year.

 

[spidey07]

Originally posted by: fLum0x

Originally posted by: spidey07
That sounds way too high and way too much house.

An easy rule is twice your gross salary for the price of the house, but that is conservative and allows for greater wealth building activities.

the amount counts as everything for the home. including insurance and everything. That being the case, at $2,500 a month, it would be about a $2,000-$2,100 house payment and the rest towards insurance and such. $2,100 a month for a house is something like a $315,000 house.

Now given your scenario...

The rough gross of 100k, lets say is 70k. That amount multiplied times 2 is only $140,000. That is a DRASTIC difference. I understand you want to own the house, not the house to own you, but that seems very conservative for someone making 100k a year.

Twice gross, so 200K house.

Which is appropriate for a dual income of 100K. You'd have to think about what would happen if somebody was out of work as well.

 

[TXHokie]

23%
House is 2x income
Guess I'm right where it should be

 

[lokiju]

18%

About.

This is based off of my wife and my income combined and after taxes.

I should note that I'm renting right now though.

But I've been looking at houses and it looks like my mortgage will be close to the same as what I'm paying for rent.

 

[nwfsnake]

15% of my gross.

 

[fLum0x]

Originally posted by: spidey07

Originally posted by: fLum0x

Originally posted by: spidey07
That sounds way too high and way too much house.

An easy rule is twice your gross salary for the price of the house, but that is conservative and allows for greater wealth building activities.

the amount counts as everything for the home. including insurance and everything. That being the case, at $2,500 a month, it would be about a $2,000-$2,100 house payment and the rest towards insurance and such. $2,100 a month for a house is something like a $315,000 house.

Now given your scenario...

The rough gross of 100k, lets say is 70k. That amount multiplied times 2 is only $140,000. That is a DRASTIC difference. I understand you want to own the house, not the house to own you, but that seems very conservative for someone making 100k a year.

Twice gross, so 200K house.

Which is appropriate for a dual income of 100K. You'd have to think about what would happen if somebody was out of work as well.

I'm retarded. For some reason I figured net as gross

 

[Capt Caveman]

Originally posted by: spidey07

Originally posted by: fLum0x

Originally posted by: spidey07
That sounds way too high and way too much house.

An easy rule is twice your gross salary for the price of the house, but that is conservative and allows for greater wealth building activities.

the amount counts as everything for the home. including insurance and everything. That being the case, at $2,500 a month, it would be about a $2,000-$2,100 house payment and the rest towards insurance and such. $2,100 a month for a house is something like a $315,000 house.

Now given your scenario...

The rough gross of 100k, lets say is 70k. That amount multiplied times 2 is only $140,000. That is a DRASTIC difference. I understand you want to own the house, not the house to own you, but that seems very conservative for someone making 100k a year.

Twice gross, so 200K house.

Which is appropriate for a dual income of 100K. You'd have to think about what would happen if somebody was out of work as well.

For Kentucky maybe, try living in CA, NY, MA, etc...

 

[RU482]

just over 15%

 

[CPA]

too much.

 

[Mxylplyx]

35% of net. I'd like that number down to about 20%.