re: Mortgage payment to take home pay ratio

quote:

---

Is this a serious question? If you don't know the answer intuitively, you shouldn't be buying a house.

---

I was asking what others were using to calculate their number in this thread, dipshit.

For purposes of setting my budget, I use two pay periods worth of income, but that multipled by 12 isn't my net income for the year. If you can't understand how there can be a question as to which number people are using in this thread, then I don't know what to tell you.

quote:

---

It should also be adjusted for whether you are on a 15 or 30yr mortgage.

---

Great point,
I bought my house in early 2002 after the interest rates dropped after 9/11. I put enough down to avoid PMI, and got a 15 year note. It ate up a large chunk of our take home pay for a few years, but it was/is a house we planned to stay in for long time. Fast forward 15 years and my mortgage has been paid off for few years.

Currently my wife and I are at 14% after our retirement savings but we'll be upgrading in the next 12 months. I'd like to stay in the low 20's with our new house.

Me and the wife make 105k gross between us, and the house note on what we are building at 1900/mo with PITI and that is about 500$ more than what I really want but it's a lot of house.

Mine is exactly 1/3

We are right at 20% but did a 15yr loan.

quote:

---

When people are figuring this number are you taking your net over the year and dividing by 12, or are you you using the net from two pay periods? (I get paid every other week)

---

I’d figure your lowest paid month, the ones where you get 4 checks if paid weekly or 2 checks if paid bi-weekly. Save the extra checks for retirement, investing, vacations, or something.

quote:

---

We are right at 20% but did a 15yr loan.

---

Not bad. My loan is in my name only so I calculated it based on my income. Add in my wife's income and we are at 16%