% of income towards home | TigerDroppings.com

Posted byMessage
Boh
LSU Fan
Baton Rouge
Member since Oct 2009
11310 posts

% of income towards home


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.







Back to top
Share:
I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31921 posts

re: % of income towards home


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.






Back to top
austiger
LSU Fan
Austin
Member since Apr 2012
166 posts

re: % of income towards home


that's reasonable.





Back to top
mglsu21
LSU Fan
Prairieville
Member since Jun 2012
538 posts

re: % of income towards home


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.





Back to top
guttata
LSU Fan
prairieville
Member since Feb 2006
20007 posts

re: % of income towards home


19.3% of our take home goes toward house mortgage, ins, taxes, etc.





Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6130 posts

re: % of income towards home


I'm at about 15% mortgage, taxes, & insurance.







Back to top
Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1782 posts

re: % of income towards home


14% of take home and it feels like too much. I know it's not, but I feel like I should be saving more.





Back to top
FutureBillionaire
LSU Fan
Houston, TX
Member since Sep 2013
161 posts

re: % of income towards home


20% is a good Number especially if it includes Property tax





Back to top
Venelar
LSU Fan
The AP
Member since Oct 2010
309 posts

re: % of income towards home


Almost identical take home here: house note(3.75 @ 15yr), insurance and taxes is 1130. 19%.





Back to top
matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: % of income towards home


I have been told by mortgage lenders - 25-28 % of total wages.





Back to top
LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
528 posts

re: % of income towards home


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.






Back to top
reb13
Ole Miss Fan
Oxford, MS
Member since May 2010
9824 posts

re: % of income towards home


There is also a large disparity in living in a major city vs a suburb vs a small town.





Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6130 posts

re: % of income towards home


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.






Back to top
BayouBengal
LSU Fan
München
Member since Nov 2003
26650 posts

re: % of income towards home


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.






Back to top
yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67448 posts

re: % of income towards home


quote:

What you guys pay in property taxes and insurance in TX and LA is criminal.



property tax is cheap in LA






Back to top
RandySavage
Member since May 2012
7413 posts
 Online 

re: % of income towards home


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.






Back to top
CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
2415 posts
 Online 

re: % of income towards home


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?







Back to top
Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
28968 posts
 Online 

re: % of income towards home


I'm right at 21% of take home pay.







Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6130 posts

re: % of income towards home


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 at 8:19 am


Back to top
Ziggy
New Orleans Saints Fan
Ponchatoula, LA
Member since Oct 2007
20507 posts

re: % of income towards home


quote:

I'm right at 21% of take home pay.

Same here.






Back to top


Back to top




//