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schexyoung
LSU Fan
Deaf Valley
Member since May 2008
5801 posts

re: Is the 28% rule too much?
I’m at 24%. We are good, but not sure what else we could have done give them the Dallas real estate prices. Good school district and it’s a house we would be happy to stay in forever. Taxes and insurance together are almost more than my mortgage.

Edit: I’m using take home pay.
This post was edited on 5/31 at 7:47 pm


Janky
LSU Fan
Team Primo
Member since Jun 2011
32707 posts

re: Is the 28% rule too much?
I am currently at 7% of pretax income. We are house shopping now and I can't bring myself to pay over 10%. 25% would drive me nuts.


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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
70571 posts

re: Is the 28% rule too much?
I'm going to be at about 24% on my upcoming mortgage. I'm okay with since, since I'm only borrowing about 1/3 the cost of the new home, but I haven't had any mortgage for about 8 years, so it will be an adjustment.


tigerbacon
LSU Fan
Arkansas
Member since Aug 2010
2452 posts

re: Is the 28% rule too much?
I wouldn’t go more than 20 percent take home which includes mortgage, and taxes. I like doing what I want when I want. I’m actually at 17% take home.


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Member since 2001
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BamaCoaster
LSU Fan
God's Gulf
Member since Apr 2016
2449 posts

re: Is the 28% rule too much?
quote:

wouldn’t go more than 20 percent take home which includes mortgage, and taxes. I like doing what I want when I want. I’m actually at 17% take home.


This. I’ve read this thread, and I’ve never heard of the 25-28%.
We’re at 10%, but putting an extra $1k/month into the mortgage as well.
It’s not a forever home by any means, but I could not stand to see that money (25-28% of my take home income) go into a mortgage paying interest like that.


lynxcat
Rutgers Fan
Member since Jan 2008
21290 posts

re: Is the 28% rule too much?
Only way to get to those low of percentages are living on a super cheap COL area, make a significant income, a small house, or a big down payment / rolled equity from a prior home.

I think we all agree that a “lower percentage is better” but using 30% of income when making $75K and year versus 30% making $250K are quite different (I.e., the cash flow commentary).
This post was edited on 5/31 at 10:25 pm


JohnnyKilroy
New Orleans Pelicans Fan
Cajun Navy Vice Admiral
Member since Oct 2012
25687 posts

re: Is the 28% rule too much?
Yep.


Big difference between spending 3k/month on housing on a 10k monthly take home and spending 1.5k/month when you're only taking home 5k/month.

Both are spending 30%, but the 10k/month take home family still has 7k left to pay for everything else/savings. The 5k take home family only has 3.5k left over.

As has been said, this decision should be driven by a properly developed budget. Not some arbitrary percentage.

Depends on your values as well. Some people really value which neighborhood they live in and there's nothing inherently wrong with sacrificing extra travel or dining out or other discretionary spending if you value those things less.


meansonny
Georgia Fan
ATL
Member since Sep 2012
11136 posts

re: Is the 28% rule too much?
Lots of good advice in the thread.

Only question I ask is if you can swing the mortgage on one income for a bit?

Doesn't have to be forever. But could you get by for 12-24 months?

It could be recession reasons, health reasons, or having kids and not working for a bit reasons.


Ingeniero
LSU Fan
Baton Rouge
Member since Dec 2013
8714 posts

re: Is the 28% rule too much?
I think I could. It wouldn't be nearly as much fun, but I could do it and still have all the essentials. It'd mean a whole lot less fishing gear though


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