Originally posted by: Mermaidman
Standard answer is no more than 1/3 of your gross monthly income for your monthly mortgage payment.
Originally posted by: FoBoT
my monthly house payment is about 19% of my gross monthly income
Originally posted by: Chaotic42
Originally posted by: FoBoT
my monthly house payment is about 19% of my gross monthly income
If you don't mind me asking, is that a comfortable amount? I'm trying to start researching now, because I want to make a very informed decision and I know *nothing* about real estate.
I believe the "1/3" figure is all-inclusive: mortgage, property tax, HOA, homeowners insurance, cost of maintaining house .. .Originally posted by: paulxcook
The payment on my house (we're taking possession this Friday) will be about 1/3 of my monthly income. This is really probably the upper limit of where it should be, but that damn PMI is killing me. Once the first 20% of the house is paid off it will go down, especially if interest rates get down close to 6% around the same time. I haven't even started payments and I can't wait to refinance.
Anyway, to answer your question, I'd be a lot more comfortable paying about 20-25% of my monthly income on a house payment.
Originally posted by: Chaotic42
The time for me to buy a house is coming (Maybe early 2008). My question is, what percentage of your gross income is wise to spend on a house? 200%? I'm paying $815 in rent right now, and I'd really like to be building equity.
What's your percentage?
Originally posted by: JEDI
subprime = sky's the limit with creative financing. see article about $2.2B bailout by the US govt with our tax $![]()
Originally posted by: paulxcook
The payment on my house (we're taking possession this Friday) will be about 1/3 of my monthly income. This is really probably the upper limit of where it should be, but that damn PMI is killing me. Once the first 20% of the house is paid off it will go down, especially if interest rates get down close to 6% around the same time. I haven't even started payments and I can't wait to refinance.
Anyway, to answer your question, I'd be a lot more comfortable paying about 20-25% of my monthly income on a house payment.
Originally posted by: JEDI
Originally posted by: paulxcook
The payment on my house (we're taking possession this Friday) will be about 1/3 of my monthly income. This is really probably the upper limit of where it should be, but that damn PMI is killing me. Once the first 20% of the house is paid off it will go down, especially if interest rates get down close to 6% around the same time. I haven't even started payments and I can't wait to refinance.
Anyway, to answer your question, I'd be a lot more comfortable paying about 20-25% of my monthly income on a house payment.
why didnt you do a 2nd loan instead of PMI. or is pmi now tax deductible now?
Originally posted by: vi_edit
It's hard to say without taking actual dollars into account.
A $2500 mortgage payment sounds like a lot. But when you are clearing 10k a month in net income that still leaves $7500 to pay for everything else. (25% of net)
When you are only clearing $2000 a month that only leaves $1500 to pay for everything else. (again, 25% of net monthly)
Once you start tossing in the "required" items like utilities, food, car payment, ect, that doesn't leave the second person with a whole lot left over.
Originally posted by: Chaotic42
Originally posted by: FoBoT
my monthly house payment is about 19% of my gross monthly income
If you don't mind me asking, is that a comfortable amount? I'm trying to start researching now, because I want to make a very informed decision and I know *nothing* about real estate.
Originally posted by: PricklyPete
It's about 17% last I calculated of our current salaries. We've been paying extra on the second load (10% loan) to pay that more quickly. Once that is payed off... it will be under 15%.