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% of income towards home
Posted on 9/17/13 at 9:37 am
Posted on 9/17/13 at 9:37 am
I think I've seen this discussed on here in the past. What are your thoughts on a % of monthly take home that's too high for a home payment?
Currently, our take home is about $5,800/month. No CC, student loans, or car loans currently.
For principal + interest, and escrow for taxes/home insurance/mortgage insurance, we pay $1,450/month.
So that's right at 25% of our monthly take home pay. It seems a bit high, but it works. I'd be more comfortable if we were at 20%, so we could keep that in mind when house hunting in the future. Just curious what opinions were on the board.
Currently, our take home is about $5,800/month. No CC, student loans, or car loans currently.
For principal + interest, and escrow for taxes/home insurance/mortgage insurance, we pay $1,450/month.
So that's right at 25% of our monthly take home pay. It seems a bit high, but it works. I'd be more comfortable if we were at 20%, so we could keep that in mind when house hunting in the future. Just curious what opinions were on the board.
10
Posted on 9/17/13 at 9:58 am to Boh
My take home is very similar to yours.
My primary residence is on a 30 year at 3.6. I paid around 65, 000 for it.
I pay $300 every two weeks.
You can obviously afford much more home than that. You just have to see where you feel comfortable.
My primary residence is on a 30 year at 3.6. I paid around 65, 000 for it.
I pay $300 every two weeks.
You can obviously afford much more home than that. You just have to see where you feel comfortable.
Posted on 9/17/13 at 10:02 am to Boh
that's reasonable.
Posted on 9/17/13 at 10:10 am to Boh
Most mortgage companies will allow up to 25-29% PTI. That's a little too high for my comfort level. Mine is around 18%. I will feel more comfortable when we are making more money and less than 15%. But that all depends on other expenses for the person in question.
Posted on 9/17/13 at 1:40 pm to mglsu21
19.3% of our take home goes toward house mortgage, ins, taxes, etc.
Posted on 9/17/13 at 5:36 pm to guttata
I'm at about 15% mortgage, taxes, & insurance.
Posted on 9/17/13 at 7:42 pm to Boh
14% of take home and it feels like too much. I know it's not, but I feel like I should be saving more.
Posted on 9/17/13 at 8:27 pm to Boh
20% is a good Number especially if it includes Property tax
Posted on 9/17/13 at 9:03 pm to Boh
Almost identical take home here: house note(3.75 @ 15yr), insurance and taxes is 1130. 19%.
Posted on 9/17/13 at 10:00 pm to Venelar
I have been told by mortgage lenders - 25-28 % of total wages.
Posted on 9/17/13 at 10:06 pm to Boh
I'm at about 21-22% for P&I&E. I feel that is actually below the norm, since I live in a much cheaper house than others I work with. I didn't put much down, and have a 20 yr note, but I'm certain it's still a lower monthly payment at a similar take home income.
Depending on other bills, and situations (ie. kids, divorced, retirement situation), I'd think anything less than 30% is fine. It'd just mean adjustments elsewhere.
Depending on other bills, and situations (ie. kids, divorced, retirement situation), I'd think anything less than 30% is fine. It'd just mean adjustments elsewhere.
Posted on 9/17/13 at 10:47 pm to LSUtigerME
There is also a large disparity in living in a major city vs a suburb vs a small town.
Posted on 9/18/13 at 10:24 am to Future_FlexZone
quote:
20% is a good Number especially if it includes Property tax
What you guys pay in property taxes and insurance in TX and LA is criminal.
Posted on 9/18/13 at 10:28 am to ItNeverRains
quote:
What you guys pay in property taxes and insurance in TX
Property tax is high in Texas. But in LA it's the lowest in the country.
Posted on 9/18/13 at 10:34 am to ItNeverRains
quote:
What you guys pay in property taxes and insurance in TX and LA is criminal.
property tax is cheap in LA
Posted on 9/18/13 at 11:07 am to yellowfin
We are at about 22% but we pay extra every month which takes us up to about 28%. The idea, obviously, is to try and increase equity faster and eliminate PMI.
I'd actually like to be paying more toward principal as the ROI would be higher than anything else I could invest in.
I'd actually like to be paying more toward principal as the ROI would be higher than anything else I could invest in.
Posted on 9/19/13 at 12:22 am to Boh
I think you should also consider life stage in these decisions. Are you married and looking to have kids? Will your wife keep working if you do? It's a personal decision as to what's important to you. Would you rather have more house or more disposable income and savings?
Posted on 9/19/13 at 12:53 am to Boh
I'm right at 21% of take home pay.
Posted on 9/19/13 at 8:18 am to yellowfin
quote:
property tax is cheap in LA
That's why I included insurance.
Folks have 300k house in South La, not in floodplain, pays $2500/yr
I have 600k house in TN, pay $600/yr.
Are you telling me on a 500k home you're paying 5k year in insurance? That's ridiculous
Maybe my folks are getting screwed?
This post was edited on 9/19/13 at 8:19 am
Posted on 9/19/13 at 8:34 am to Ace Midnight
quote:
I'm right at 21% of take home pay.
Same here.
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