What percentage of your pre-tax income goes towards your mortgage?

[NutBucket]

Currently I don't have a mortgage but anticipate having one again in the next few months. I'd guesstimate 33% based on what the market looks like.

 

[IronWing]

You cant just look at your mortgage. As a house ages it needs constant repair and maintenance. Windows need replacing, furnace breaks down, roof has to be replaced, driveways crumble to dust, trees need trimming, bathrooms and plumbing need repairs, Kitchens need fixing, chimney needs repair, water heater dies,Washer and dryer needs replacement, It never ends.

Yep. We set up a separate savings account to fund homeowners insurance, property taxes, and major maintenance/repairs. We put in a set amount every month. We fund it at a bit over 7% of gross income which works out about right for us. The fund never zeroes out and never grows too much beyond reasonably expected costs.

 

[Slew Foot]

Lets see here, as a percentage of gross total household income? About 12%, on a 15 year fixed mortgage.

 

[piasabird]

It helps if you can avoid or pay off your credit cards. Banks are allowed to make too much interest on credit cards. One late payment and you can be paying for it for months in higher interest.

 

[DrPizza]

By "towards your house" I presume you mean mortgage. Between 4 and 5% by a quick calculation, which includes taxes and insurance in escrow. If you mean mortgage only, 2.5%, roughly.

If by "towards your house," you include fuel for lawnmower, lawnmower, remodeling expenses, maintenance, etc., then a hell of a lot more. E.g., I don't want to know how many thousands I just sunk into my garage the past couple of months.

 

[IndyColtsFan]

We're just under 9% on a 15-year fixed and that includes taxes and insurance.

 

[NutBucket]

It helps if you can avoid or pay off your credit cards. Banks are allowed to make too much interest on credit cards. One late payment and you can be paying for it for months in higher interest.

Allowed? It's a "free" market. Don't be stupid and you won't be broke.....

 

[Drako]

0% - paid off about 8 years ago.

 

[JulesMaximus]

Mine is around 19% of net income and that includes property tax.

 

[maddogchen]

Good for those who have paid off their mortgage! I know people who retired who still have not paid off their houses...

 

[PricklyPete]

0% - paid off about 8 years ago.

I'm sure that is a nice feeling. Our mtn condo is payed off and every once in a while I get the urge to sell it and just pay off our primary residence...but my mortgage rate is just so low, I always decide it isn't financial prudent (plus I like having the condo).

 

[Leyawiin]

I bought my first home in 2010 on a 30 year mortgage @ 4.25%. A year later my aunt passes away and I come into enough money to pay off the mortgage 29 years early. Still, its a 35 year old modest tract home so I'm starting to spend a lot on replacing this and that and doing cosmetic maintenance. Not having a mortgage is making it way easier - can't imagine have to come up with the money to do things like replacing the fencing, repainting the exterior, etc... plus a monthly mortgage.

 

[rh71]

Your taxes are insane. I grew up in CT (right on the New York border) and remember how ridiculous taxes were for my Dad. Those insane taxes did not seem to have any appreciable social benefit relative to what I see here in CO...so I fail to see why they are so high other than government waste. That would just piss me off.

General taxes going to local gov't, cops, and public works employees are $5k, while the school tax portion is $10k. Basically any teacher over 15 years experience (like 60% of them because why would they leave) gets $100k+/year salary. Our K teachers made $125k/year. I've gone on a tirade about this problem before. Worst part is it has nothing to do with student performance, only their longevity. Bad districts (and I mean bad) have just as many 6-figure teachers. And free health care and ridiculous pensions. One word: unions.

There is light at the end of the tunnel for us though - we're making extra payments for mortgage and we should be done in 12 years, then it's just taxes. It's amazing that actually sounds like a positive.

 

[PricklyPete]

General taxes going to local gov't, cops, and public works employees are $5k, while the school tax portion is $10k. Basically any teacher over 15 years experience (like 60% of them because why would they leave) gets $100k+/year salary. Our K teachers made $125k/year. I've gone on a tirade about this problem before. Worst part is it has nothing to do with student performance, only their longevity. Bad districts (and I mean bad) have just as many 6-figure teachers. And free health care and ridiculous pensions. One word: unions.

Yuck

 

[boomhower]

About 25% as my wife has been out of work for close to a year. She starts her new job next week and it will drop to 15%.

 

[TwiceOver]

17% with both of our incomes.

 

[monkeydelmagico]

Bought fixer--upper for cash and am using a heloc for repairs. I guess that's similar enough to call it a "mortgage". It's less than 10% of my pre-tax and even less if I calculate household gross income with GF and my son all earning paychecks.

 

[jlee]

16.67% with full escrow now. 10.5% in 2 weeks. Under 10% if we factor in rental income.

 

[DrPizza]

0% - paid off about 8 years ago.

General taxes going to local gov't, cops, and public works employees are $5k, while the school tax portion is $10k. Basically any teacher over 15 years experience (like 60% of them because why would they leave) gets $100k+/year salary. Our K teachers made $125k/year. I've gone on a tirade about this problem before. Worst part is it has nothing to do with student performance, only their longevity. Bad districts (and I mean bad) have just as many 6-figure teachers. And free health care and ridiculous pensions. One word: unions.

There is light at the end of the tunnel for us though - we're making extra payments for mortgage and we should be done in 12 years, then it's just taxes. It's amazing that actually sounds like a positive.

We (teachers) make about half that on the other end of the state. I can't figure out what's up with salaries on Long Island.

 

[Humpy]

12% but still in the little temporary house in a great location that we're too lazy to move from.

 

[Pulsar]

28% seems completely-off-the-charts-insane to me. No wonder the middle class is struggling.

We are sitting at barely over 10%. I think that's too high LOL

28% including taxes and insurance (escrow). Single income family, 1400 sq ft ranch. 15 year loan at 3.5%. 11 years left.

 

[dirtboy]

0% Paid it off 3 years after I bought it.

 

[Spungo]

General taxes going to local gov't, cops, and public works employees are $5k, while the school tax portion is $10k.

Holy crap.

I live alone, 2 bedroom condo, about 17% of my gross income. Property taxes were something like $1300 last year.

 

[Engineer]

0%, I bought within my means and paid off early.

Same here. Took six weeks of overtime and wired the money in to pay it off on my 37th birthday. That will have been 10 years ago in January. Of course, property taxes are the perpetual mortgage (which I have to pay by the end of this month! )

 

[Jumpem]

The poll doesn't go low enough. 9.8%.