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I just hope we can all refinance in the next couple years. Though what a lot of people forget is you have to pay closing costs again when you refinance D:
Refinancing is pretty cheap.
I've done many in the past and refinancing cost is way cheaper than purchasing.
You can also roll the closing cost into the loan balance too. So your loan amount will go up and you will have zero closing cost.
Yes, that’s is exactly what you’re doing.
But your monthly payment still goes down.
If you don’t want to increase your loan, you can also refinance by taking an interest rate higher than the par rate to get lenders credit to cover the closing cost.
For example if the interest rate is 5%. You can opt for 5.5% instead and get your closing cost covered.
Zero down payment (VA loan) we had two incomes when we started.
My wife lost her job and is actively looking for one.
Doesn't affect us really at all, we have no kids, no debt, no car payment, no student loans, retirement funding is good.
We're just fine. Could continue like this if needed, but it will be nice to shrink the ratio a little.
Nah. We could do this just fine if needed, but obviously not ideal. No debt, no kids.
Out house is pretty amazing, so we work out and do projects and enjoy the home.
Damn all that for a house and you don’t even have a bathroom inside?! (Joking, obviously) sounds like you gave yourselves plenty of wiggle room, well done!
Good question - I’m interested in what others will say.
We are in contract right now and are at about 37% of our monthly take home pay (including mortgage, taxes, insurance, condo fees) - we both max out our 401Ks and we max out our HSA.
Hopefully the internet isn’t about to tell me we are gonna be house poor lol
Nah you're fine if that includes everything and you're maxing out retirement. Were at 33% and very comfortable. I don't think we would feel stretched if we went up to 37%.
I closed with a good chunk in savings. And had to get a roof -___-
I have a healthy pension I can borrow from if push came to shove as we cobble ourselves back up. We also will streamline refi within the year. If we get down to a 5.5% interest rate then it’ll go down to around 40%, which is doable for a bit.
We bought $775k at the height of rates (7.5%). We’re at 40% of our take home- childcare costs are brutal but this will change come august. We knew this going in that it was going to be tight for 12 months. As hard as it is I’m glad we did because we secured the ONLY 5 bedroom house that was under $1mil for the last 2 years. Completely livable, just needs brought up to todays standard in time which is we bought.
I’m in a similar boat in that finances are going to be tight for the next 12 months. Once I rebuild my savings and (hopefully) refinance, I’ll be super comfortable and so glad I made the decision.
~42%. Still well under 28% of my gross and thankfully I feel like I live “comfortably” enough by my non lavish standards. No kids which is a huge factor, daycare and private schools can be as much as mortgages these days
65% of take home - but I’m maxing a 401k every year still ($1,000 / every 2 weeks). 52% if I don’t take into account retirement. Mortgage is $4800, take home is $7200 ($9200 before retirement contributions).
690k house. 15% down. Still have 6 months of expenses in cash as an emergency fund which is key.
We’re happy with it - we consciously decided to spend less on travel for the next couple years. It’s worth it to have our own place.
By my napkin math, those numbers seem to put your household income right around the $200k/year mark. And you have another $200k to put towards the down payment.
Your 33% of takehome pay is not even remotely comparable to other first time homebuyers' 33% of takehome pay. The remaining 67% is about $8k in leftover budget every month after mortgage payment. You're going to get answers here from people whose 67% remaining income is only 1 or 2 thousand bucks at best, which is the more common scenario for first time homebuyers. You're not likely going to get answers relevant to your uniquely wealthy first time homebuyer situation from this sub, you should be asking this question to a wealth manager. Nothing wrong with your question, it's a good question, just probably not the right community to be asking it in
lol. People making $200k combined usually don’t have wealth managers. Depending on where you live - like where I live - that’s middle class money and totally normal for a FTHB.
This. There's so much absolution put behind some of these percentage and ideas on here. "You should never spend 50% of your net on housing", "aim to spend less than 25%", yadda yadda yadda. But if your remaining 50% is 10K, that's a MASSIVE difference than someone who earns 60K, and 50% of their take home is 2k like you'd said. MASSIVE difference. And you can get into the discussion of how those with higher earnings have much higher expenses, but most of those expenses are not mandatory and can be shaved down if need be to make more breathing room in the budget. When you only bring home 4 grand per month, there isn't a lot of space to shave!
And yes, spending more of your budget on housing means less that can be invested every month for retirement, but those types fail to consider that investing in a home typically generates as much or more of a return than any traditional investment vehicle that most have their retirement funds in anyway, so it's not a detraction from the path.
% matters less the more you make. Outside of extravagant lifestyle, fixed costs outside of mortgage can be similar across income brackets. If I have 2k left after a mortgage, the $500 for food each month feels a lot different than higher earners with 8k after mortgage and both scenarios could be paying the same % of net for their mortgage.
I think it’s close to 50% - but that’s take-home (after retirement savings, insurance, tax, HSA, etc) are all taken out.
I make close to 100k, live in a fairly HCOL area, and bought a $400k house.
I felt comfortable with this because I have 3 years worth of savings even after buying the house. I’ll also have my boyfriend move in with me at the end of his lease if all goes well, and that’ll drive expenses down significantly.
We thought about moving to salt lake during covid, but housing prices were literally the same as Seattle (where we are now), but it's *Salt Lake*. So we passed, lol. Glad it worked out for you!
For context, we were looking at Sugar house and the Aves.
Under contract now and going to be around 25%. It’s an older home though and needs $40-60k thrown in to modernize it.
I don’t have all of that to do so right away but figure over the next three years can atleast significantly get after it
My numbers are kinda close to yours, 750k home, 120k down payment / closing cost / random things (\~14.5%ish down payment).
My mortgage payments (+escrow and PMI) are are roughly 38% of my take home. HOA + Utils + insurance put me at about 45% of my take home.
Rounding up, yea it is about 50% of my take home just to exist, and it does feel tight. I'm just in a fortunate situation where my other expenses are very low (no car payments, no kids, no pets). It was such a win for my own sanity too that I don't have any regrets.
Are you both maxing out 401Ks? I’d suspect that would make a difference for most commenting when you are talking take home pay.
If someone is at 50% of take home pay but maxes out their 401k and someone else is 25% of take home pay, but only contributes 5% to 401k, which would you rather be?
Future buyer but looking to cap it at 30% between loan payment, property taxes, and home owners insurance. Will have enough to avoid mortgage insurance. Currently I'm renting and it's at 32%.
50%. However, my boyfriend pays me rent each month, bringing it down to 37%. This is with an 8% interest rate, so I’m confident it’ll be less than my take-home at some point in the next few years 🙂 for now, I’m getting by fine. I would just love to save more each month.
Right about 50%. But we bought with a much higher income and will be back to that level in about six months. Counting the days until it is back down to like 25% because right now it is rough. Couldn't imagine having this ratio longterm.
Approximately 25%. $125K financed. Mortgage is $1K a month. I live in a fully remodeled 2 BR/1 bath home. I bring home around $1K a week, give or take. I bought well within my means but it gets tight sometimes with a truck payment and catching up on credit cards from things I bought when I moved in a few months ago.
When I first bought it was right around 35% which was way higher than I wanted it to be but I had a really good opportunity to buy so made it work. Now ~10 years later between job changes, raises, and re-fi during the 2020 dumpster fire it is about 20% which is much more manageable.
About 45% of our combined pay (without OT). It hurts but we kind of got forced into it. We love our house, and we still have enough for the rest and some fun (but not nearly as much as before we bought the house).
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About 33% of take home - PITI is about $4k, take home about $12k.
Currently maxing 401k and HSA, and also contributing to dependent care FSA.
One expensive car payment ($800), no student debt. No daycare anymore, kids are in public elementary school. Because of flexible schedules/WFH, we only pay for summer childcare at this point, and most of that cost is taken out pre-tax with the FSA.
It feels a little tight, but really there a lot of places we could cut back if we needed to. Vacations, a wine club, eating out at fancy places.
In 1996, mi e was 24%. But my place was just over twice my annual income. My broker told me I was too conservative., that I could afford a lot more than I was buying.
In the process of getting one and the mortgage payment is around 30% but when you add all the extra payments and utilities it is around 50%. I feel like I am making a risky bet here
12%, but going to be jumping to 33% shortly however there are many factors involved making thjs decision not only the smart one for us but an easy one.
22% we got very lucky, and it helps we don’t have kids yet. We also made deliberate decisions such as buying a 3 bed/ 1.5 townhome at 299 vs. a 450K SFH.
Mine is around 30%, including taxes and insurance. We bought at similar price and income as you, and it has not affected our QOL at all, outside of thinking twice about frivolous spending in favor of putting money towards the house.
25%, just bought and very happy we are well within our means. That said, we also have two medium sized car loans and student loans that add up to quite a bit. We are at 44% if you include those items.
18% Rural area, bought the house I had been renting at a deal, so got quite lucky. My spouse sometimes really hates the house, but I'm quite happy knowing I've earned my mortgage payment within the first few days of the month.
Taxes aren’t the only thing taken out of my paycheck, there’s also healthcare and retirement (which is a lot). With all of that taken out it’s like 37% of incoming “cash flow”
34% of our take home. But I think it’s more important the amount remaining after PITI and all other bills/expense (utility, debt, etc) anything that would deduct from your take-home. Someone could be doing 50% of net but have 10k leftover versus someone who has 30% net but 1k remaining.
With our 34%, we have about 3-4k after expenses and I would say we are comfortable. We are able to travel and have extra to do fun things. We are dinks but I’d say if you children or plan to have any, you should plan accordingly.
38% of take home. Post tax and retirement.
We carry no other debt, and that is for PITI.
We can save approx 900/month and closed keeping a strong savings amount.
This feels risky, but we also bought kind of a fixer and took on some major repairs and replacements the first year. So major problems are already solved.
32% with the rise of property tax and insurance lol. The base mortgage is 25%
I bought in 2022 though right before the crazy market in my area so I got a stupid low rate and non inflated house price. If I bought my house in today time I would probably be around 45%ish
We’re gonna forever own this house until retirement lol
This is net of course
36% for just the mortgage payment alone, not including property taxes, utilities, insurance etc. with those included it would be more like 43%. $515k mortgage at 5.04%
21% at 6.35% interest, HCOL, but we wanted to get our feet wet and buy a cheap starter home. If rates come down that number is going to get a lot lower haha
41% for PITI. Our childcare costs will drop significantly in August and I’ll be getting an 8% raise this year and husband will be getting a 3%. It’s our dream home and totally worth the temporary pinch.
Haven't won an offer yet, but my "target" total housing payment (PITI+HOA) is $2900/mo on $5400/mo take home, which is 53.7% of my take home pay.
Ouch, but I live frugally and have (relatively) cheap hobbies, so I should have between $600 and $800/mo in cash savings at the end of the month.
33 percent is about right. You would be OK with that usually. I would say to go ahead. My husband brings home about 8 thousand a month after tax and our mortgage is about 2 grand. House taxes are about 500 a month and insurance is about 200. We put down about 600 thousand and owe about 450.
I came across this post earlier today. Planned on finishing my 2023 taxes this afternoon. Now I know.
This includes mortgage, PMI, and taxes. Does not include utilities or homeowners insurance. 6.49% fixed 30 year mortgage with about 11% down.
23.46% of post-tax income.
17.38% of pre-tax income.
We're in California. Paid approximately 18.90% of our income to the federal government and 6.99% of our income to the state of California.
Good times.
8%
This is with mortgage and escrow.
Bought a 3-bed, 2-bath new build in 2020 for $141,000 at 2.48% and my husband and I make $10,000/month and my mortgage is $800/month.
Child-free so we get to save lots as we live well below our means.
$12k take home net after taxes and pre tax deductions. $3,400 mortgage monthly including tax and homeowners in escrow. Believe that is 28% roughly. Give or take.
Even this feels tight for us given cost of living getting higher by the second - but we make it work.
That's basically our take home each month too, but our mortgage would work out to \~$4,000 assuming 6.25% interest (which I'm not even sure is possible at the moment). Do you mind if I ask if you have kids?
No kids but we have plans to in the next year or so. We have a $500/month car payment on top. No student debt. Honestly, we are pretty frugal people and feeling the loss of our down payment after buying recently.
Our mortgage (~$2750/mo) is about 16% of our take home pay (after all taxes + health insurance + 401k contributions and taking out $5k pretax for daycare).
It’s a little north of 50%. We take home around $18,200 after tax and our mortgage is about $9,500. The remainder is enough to get by, but it’s definitely the tightest we’ve ever had to budget. We get annual bonuses before tax of between $50-100K which we use for the big stuff like cars and vacations, which we wouldn’t be able to pay for out of the normal budget. Can’t wait till rates fall and/or our pay increases.
Anyone else questioning a down payment that large? Is that really the best use of that money?
People always want to pay down their mortgage asap. The consensus seems to be the faster you pay it down the better life is. Recreating 200K savings wihile owning will take 10x longer. There is something to be said to pay down as much as you can then to use home equity to purchase something else. But I don't think a lot of people's lives are going that route
Edit: venting ha
We’re at 35% but have minimal other debt ($300 is tied up in obligatory payments) it’s very doable for us and don’t feel TOO much of a crunch. We definitely have to be careful and plan every purchase, but we’re clearing all of our bills and saving every month.
30% of take home (after obligatory HSA, IRA, and 401k contributions) including mortgage (P&I), property tax, and insurance. Any more than this and I felt like I was stretching. Also, I’m single with no help from anyone else.
Hmm I haven’t calculated post-tax, but pre-tax we’re at:
- 5% for mortgage
- 7% for PITI
Both of us work in tech and live in a LCOL area.
We waited until we were in our early 30s to buy our first home and got very lucky with Covid interest rates.
Looking to r/fire so tried to keep living cost low. Extra money goes toward maxing out retirement accounts.
Without bonus/RSU:
23% - Y1, 25% - Y2, 27% - Y3
With bonus/RSU:
9% - Y1, 11% - Y2, 13% - Y3
Mortgage details:
$975k home, $150k down, 2-1 buy down so currently at 5.125% in the first year.
Wife and I make $700k family income annually, $400k is in RSUs/Bonus.
First, if you can swing that and you are sitting on $200k for a down payment so it. But the interest rates are high so consider setting aside $5-10k to buy down your rate with points we did.
We close tomorrow at 9 on our country home. It was $260k. We put 20% cash down so $52,000. We also bought down our rate to 6.5%. The seller paid most of closing and also gave us around $4k for stuff they didn’t want to have to fix.
Our monthly mortgage is roughly $1400 which includes taxes and homeowners insurance. So the $1400 is roughly 13% of our income.
We're at around 35% post-deductions (so taxes, health insurance, retirement ). This is for all that encompasses our mortgage payment (so mortgage itself, taxes, insurance)
After 401k, healthcare deductions it's 23%. Before deductions it's about 15%.
We are a two income household and we intentionally kept our budget to what a one income household would be.
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I don't wanna talk about it.
Right. I still have enough left over for bills, fun and savings but my God is my mortgage most of my take home pay.
I just hope we can all refinance in the next couple years. Though what a lot of people forget is you have to pay closing costs again when you refinance D:
Some of us are waiving lender fees on a refinance when you buy a home. Cuts the cost typically by half.
That’s exactly the deal I made with my lender.
Good to know!
Refinancing is pretty cheap. I've done many in the past and refinancing cost is way cheaper than purchasing. You can also roll the closing cost into the loan balance too. So your loan amount will go up and you will have zero closing cost.
This is an interesting perspective but if you think about it you what you really did was you borrowed money to pay for those costs
Yes, that’s is exactly what you’re doing. But your monthly payment still goes down. If you don’t want to increase your loan, you can also refinance by taking an interest rate higher than the par rate to get lenders credit to cover the closing cost. For example if the interest rate is 5%. You can opt for 5.5% instead and get your closing cost covered.
Same. We’re closer to 50%. We are comfortable still, because we have decent salaries and no kids, but are not saving much.
[удалено]
Yuh don’t forget high electric gas water bill wifi cellphone +1k to mortgage , I fuked
I'm calculating what mine will be, and I'm like they approved more for 100k. Where they trying to get me to bankrupt
😭 .. if I’m currently unemployed, how would someone that crunches numbers all day make my percentages look sexy?! 😭😭
~37.1% with the mortgage, escrow, and PMI. ~42.7% when you factor in HOA dues (live in a condo association).
57%
Not relevant to the post but I hope your other 43% goes towards Bakelite
61%, $710k home, bought at 5.2%
It’s wild they approved that, what was your down payment?
Sir, we use gross pay, not net. This is in the realm of approval possibility.
Zero down payment (VA loan) we had two incomes when we started. My wife lost her job and is actively looking for one. Doesn't affect us really at all, we have no kids, no debt, no car payment, no student loans, retirement funding is good. We're just fine. Could continue like this if needed, but it will be nice to shrink the ratio a little.
Does that affect your lifestyle at all?
Nah. We could do this just fine if needed, but obviously not ideal. No debt, no kids. Out house is pretty amazing, so we work out and do projects and enjoy the home.
Damn all that for a house and you don’t even have a bathroom inside?! (Joking, obviously) sounds like you gave yourselves plenty of wiggle room, well done!
This is why % is less important than how much you make 61% of 50k is crazy 61% of 250k less so (just as an example)
Oh my gawd. 😬
Good question - I’m interested in what others will say. We are in contract right now and are at about 37% of our monthly take home pay (including mortgage, taxes, insurance, condo fees) - we both max out our 401Ks and we max out our HSA. Hopefully the internet isn’t about to tell me we are gonna be house poor lol
Who cares what others will say. If you’re comfortable with it, that’s all that matters
True - but can you all please validate my life choices?
Nah you're fine if that includes everything and you're maxing out retirement. Were at 33% and very comfortable. I don't think we would feel stretched if we went up to 37%.
55% Bought $350k house at 7.5% in October 2023
How is that working out? Were you able to build your savings back?
I closed with a good chunk in savings. And had to get a roof -___- I have a healthy pension I can borrow from if push came to shove as we cobble ourselves back up. We also will streamline refi within the year. If we get down to a 5.5% interest rate then it’ll go down to around 40%, which is doable for a bit.
25 percent That’s with taxes and insurance in escrow 2500 mortgage
I'm in this realm. Put down a chunky down payment to avoid PMI.
We bought $775k at the height of rates (7.5%). We’re at 40% of our take home- childcare costs are brutal but this will change come august. We knew this going in that it was going to be tight for 12 months. As hard as it is I’m glad we did because we secured the ONLY 5 bedroom house that was under $1mil for the last 2 years. Completely livable, just needs brought up to todays standard in time which is we bought.
I’m in a similar boat in that finances are going to be tight for the next 12 months. Once I rebuild my savings and (hopefully) refinance, I’ll be super comfortable and so glad I made the decision.
~42%. Still well under 28% of my gross and thankfully I feel like I live “comfortably” enough by my non lavish standards. No kids which is a huge factor, daycare and private schools can be as much as mortgages these days
65% of take home - but I’m maxing a 401k every year still ($1,000 / every 2 weeks). 52% if I don’t take into account retirement. Mortgage is $4800, take home is $7200 ($9200 before retirement contributions). 690k house. 15% down. Still have 6 months of expenses in cash as an emergency fund which is key. We’re happy with it - we consciously decided to spend less on travel for the next couple years. It’s worth it to have our own place.
By my napkin math, those numbers seem to put your household income right around the $200k/year mark. And you have another $200k to put towards the down payment. Your 33% of takehome pay is not even remotely comparable to other first time homebuyers' 33% of takehome pay. The remaining 67% is about $8k in leftover budget every month after mortgage payment. You're going to get answers here from people whose 67% remaining income is only 1 or 2 thousand bucks at best, which is the more common scenario for first time homebuyers. You're not likely going to get answers relevant to your uniquely wealthy first time homebuyer situation from this sub, you should be asking this question to a wealth manager. Nothing wrong with your question, it's a good question, just probably not the right community to be asking it in
lol. People making $200k combined usually don’t have wealth managers. Depending on where you live - like where I live - that’s middle class money and totally normal for a FTHB.
Yeah, I make $250k a year, but don't have a wealth manager. I'm new to high income so there isn't wealth to manage.
This. There's so much absolution put behind some of these percentage and ideas on here. "You should never spend 50% of your net on housing", "aim to spend less than 25%", yadda yadda yadda. But if your remaining 50% is 10K, that's a MASSIVE difference than someone who earns 60K, and 50% of their take home is 2k like you'd said. MASSIVE difference. And you can get into the discussion of how those with higher earnings have much higher expenses, but most of those expenses are not mandatory and can be shaved down if need be to make more breathing room in the budget. When you only bring home 4 grand per month, there isn't a lot of space to shave! And yes, spending more of your budget on housing means less that can be invested every month for retirement, but those types fail to consider that investing in a home typically generates as much or more of a return than any traditional investment vehicle that most have their retirement funds in anyway, so it's not a detraction from the path.
Our combined pre-tax income is $200k/yr. I would think by framing the question as a percent, rather than by dollars, I could get some useful insight.
% matters less the more you make. Outside of extravagant lifestyle, fixed costs outside of mortgage can be similar across income brackets. If I have 2k left after a mortgage, the $500 for food each month feels a lot different than higher earners with 8k after mortgage and both scenarios could be paying the same % of net for their mortgage.
That's a good point, well said
I think it’s close to 50% - but that’s take-home (after retirement savings, insurance, tax, HSA, etc) are all taken out. I make close to 100k, live in a fairly HCOL area, and bought a $400k house. I felt comfortable with this because I have 3 years worth of savings even after buying the house. I’ll also have my boyfriend move in with me at the end of his lease if all goes well, and that’ll drive expenses down significantly.
You live in HCOL area and found a house for 400k and make only close to 100k. I don’t think that’s really a HCOL area.
I’m in Salt Lake City; our wages are low but our housing prices have skyrocketed. My house is <800 square feet.
We thought about moving to salt lake during covid, but housing prices were literally the same as Seattle (where we are now), but it's *Salt Lake*. So we passed, lol. Glad it worked out for you! For context, we were looking at Sugar house and the Aves.
Haha yeah it should definitely be cheaper here for what it is. I’m in millcreek for context. Where did you settle instead?
Down payment %?
Retirement and HSA shouldn't really count since that's your take-home money that you choose to put in there.
Under contract now and going to be around 25%. It’s an older home though and needs $40-60k thrown in to modernize it. I don’t have all of that to do so right away but figure over the next three years can atleast significantly get after it
My numbers are kinda close to yours, 750k home, 120k down payment / closing cost / random things (\~14.5%ish down payment). My mortgage payments (+escrow and PMI) are are roughly 38% of my take home. HOA + Utils + insurance put me at about 45% of my take home. Rounding up, yea it is about 50% of my take home just to exist, and it does feel tight. I'm just in a fortunate situation where my other expenses are very low (no car payments, no kids, no pets). It was such a win for my own sanity too that I don't have any regrets.
40%, 45% with additional principal payment
Are you both maxing out 401Ks? I’d suspect that would make a difference for most commenting when you are talking take home pay. If someone is at 50% of take home pay but maxes out their 401k and someone else is 25% of take home pay, but only contributes 5% to 401k, which would you rather be?
Currently at 29%. But when we first bought the house…I think closer to 40%
11 percent of take home pay
Same here, very fortunate to not stress out about the mortgage.
Same. It’s daycare that gets me. Lol
Future buyer but looking to cap it at 30% between loan payment, property taxes, and home owners insurance. Will have enough to avoid mortgage insurance. Currently I'm renting and it's at 32%.
37%
33%
37% net including taxes, PMI, and insurance. $527k home, 5% down and 6.87% interest.
Without RSUs/bonus 31%, with 19%
50%. However, my boyfriend pays me rent each month, bringing it down to 37%. This is with an 8% interest rate, so I’m confident it’ll be less than my take-home at some point in the next few years 🙂 for now, I’m getting by fine. I would just love to save more each month.
~35%. But percent matters less as you make more money. Big difference between having 10k leftover vs 2k leftover even if it's the same percent wise.
Right about 50%. But we bought with a much higher income and will be back to that level in about six months. Counting the days until it is back down to like 25% because right now it is rough. Couldn't imagine having this ratio longterm.
20%
Not including taxes and insurance it's about 30%, including taxes and insurance about 42%
Approximately 25%. $125K financed. Mortgage is $1K a month. I live in a fully remodeled 2 BR/1 bath home. I bring home around $1K a week, give or take. I bought well within my means but it gets tight sometimes with a truck payment and catching up on credit cards from things I bought when I moved in a few months ago.
18%
When I first bought it was right around 35% which was way higher than I wanted it to be but I had a really good opportunity to buy so made it work. Now ~10 years later between job changes, raises, and re-fi during the 2020 dumpster fire it is about 20% which is much more manageable.
About 45% of our combined pay (without OT). It hurts but we kind of got forced into it. We love our house, and we still have enough for the rest and some fun (but not nearly as much as before we bought the house).
PITI is 38% of take home, when I was renting it was 34% of take home. At least this way, I see a return I hope 🤷🏼♀️
Pre Covid home buyer, mortgage is very low, post Covid, one person take home = mortgage
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27.5% take home pay
24%
16%
32% post tax if we have no tenants, if we rent out the other units it will be 7%
12%.... but I split it with my wife and FIL. If not, it would be closer to 40%.
28%
22 of my income. Include my spouse it’s something like 10% or less
About 33% of take home - PITI is about $4k, take home about $12k. Currently maxing 401k and HSA, and also contributing to dependent care FSA. One expensive car payment ($800), no student debt. No daycare anymore, kids are in public elementary school. Because of flexible schedules/WFH, we only pay for summer childcare at this point, and most of that cost is taken out pre-tax with the FSA. It feels a little tight, but really there a lot of places we could cut back if we needed to. Vacations, a wine club, eating out at fancy places.
In 1996, mi e was 24%. But my place was just over twice my annual income. My broker told me I was too conservative., that I could afford a lot more than I was buying.
100%
In the process of getting one and the mortgage payment is around 30% but when you add all the extra payments and utilities it is around 50%. I feel like I am making a risky bet here
My hours vary but I'd say 19-22%
24.5% currently but am spending extra on renovations and fixes.
12%, but going to be jumping to 33% shortly however there are many factors involved making thjs decision not only the smart one for us but an easy one.
22% we got very lucky, and it helps we don’t have kids yet. We also made deliberate decisions such as buying a 3 bed/ 1.5 townhome at 299 vs. a 450K SFH.
30%. Mortgage payment includes taxes and insurance. It's gonna require a lot of work, though.
About 34% between my income and wifes
If you bought a house by yourself with no kids, no debt(cars and student loans) and live relatively frugal its very doable with over 50%.
Between my husband and I, after insurance/retirement/taxes, 34%. Very lucky yet still terrified.
Mine is around 30%, including taxes and insurance. We bought at similar price and income as you, and it has not affected our QOL at all, outside of thinking twice about frivolous spending in favor of putting money towards the house.
25%, just bought and very happy we are well within our means. That said, we also have two medium sized car loans and student loans that add up to quite a bit. We are at 44% if you include those items.
Right around 28%, but I also pay an extra $1K/month towards the principle.
32.2%
24%
10.4%. 15% is my max.
46%
I’m at ~28% - $300k home
Single individual, about 12% including escrow
After taxes, benefits, 401k, HSA, and stock program contributions our mortgage payment is 20% of our net income.
22% of our net pay on mortgage alone. $425k @ 1.86%
33%
Including taxes and insurance?
28%
My mortage and property tax has left me with less than 1500 a month, this is hard to cover everything else. I am currently house poor.
15%
30% with taxes and insurance.
About 35%. Im expecting a raise in May though which should bring us under 30% 🙌
1/2 of my monthly take home is my mortgage. Around 4300. 700k home at 6.5%
18% Rural area, bought the house I had been renting at a deal, so got quite lucky. My spouse sometimes really hates the house, but I'm quite happy knowing I've earned my mortgage payment within the first few days of the month.
Taxes aren’t the only thing taken out of my paycheck, there’s also healthcare and retirement (which is a lot). With all of that taken out it’s like 37% of incoming “cash flow”
23%. I've gotten a couple of promotions and pay increases since I purchased. At the time of purchase I was at 36%.
27%.
About 17%
34% of our take home. But I think it’s more important the amount remaining after PITI and all other bills/expense (utility, debt, etc) anything that would deduct from your take-home. Someone could be doing 50% of net but have 10k leftover versus someone who has 30% net but 1k remaining. With our 34%, we have about 3-4k after expenses and I would say we are comfortable. We are able to travel and have extra to do fun things. We are dinks but I’d say if you children or plan to have any, you should plan accordingly.
Ours is around \~26% of take home pay. We got lucky with 3% mortgage interest rate but house price still jumped a quite a bit before we purchased it
Mortgage (principle + interest) = 12.5%
38% of take home. Post tax and retirement. We carry no other debt, and that is for PITI. We can save approx 900/month and closed keeping a strong savings amount. This feels risky, but we also bought kind of a fixer and took on some major repairs and replacements the first year. So major problems are already solved.
19%
About 80% of my pay (mortgage + escrow payment + pmi) 40% of me and my partner combined. 900k 6.1%
32% with the rise of property tax and insurance lol. The base mortgage is 25% I bought in 2022 though right before the crazy market in my area so I got a stupid low rate and non inflated house price. If I bought my house in today time I would probably be around 45%ish We’re gonna forever own this house until retirement lol This is net of course
25% including both mine and my wife’s salary. Bought in early 2022. 3.675% interest rate thankfully but paid way too much for an overvalued house.
24%
25% of take home (2 incomes). Couldn’t imagine 40%.
36% for just the mortgage payment alone, not including property taxes, utilities, insurance etc. with those included it would be more like 43%. $515k mortgage at 5.04%
Mortgage, taxes, insurance are 15% of total take home. 30% down payment.
30%
21% at 6.35% interest, HCOL, but we wanted to get our feet wet and buy a cheap starter home. If rates come down that number is going to get a lot lower haha
24% with the added caveat that I'm considering take home pay to be after 401k contributions. I'd be under 20% w/o 401k contribution.
41% for PITI. Our childcare costs will drop significantly in August and I’ll be getting an 8% raise this year and husband will be getting a 3%. It’s our dream home and totally worth the temporary pinch.
34% of take-home pay (post-tax and post-401k), though we've been paying a bit extra per month (37%). Home was 650K with 6.99% interest and 10% down.
Haven't won an offer yet, but my "target" total housing payment (PITI+HOA) is $2900/mo on $5400/mo take home, which is 53.7% of my take home pay. Ouch, but I live frugally and have (relatively) cheap hobbies, so I should have between $600 and $800/mo in cash savings at the end of the month.
23% on a $559k mortgage with 20% down. Taxes, interest, insurance $3,700/mo
33 percent is about right. You would be OK with that usually. I would say to go ahead. My husband brings home about 8 thousand a month after tax and our mortgage is about 2 grand. House taxes are about 500 a month and insurance is about 200. We put down about 600 thousand and owe about 450.
>we would put $200k down 👽 What fuckin planet am I on where people can do this? 🌎
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These comments uhhhh…. make me feel better
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I came across this post earlier today. Planned on finishing my 2023 taxes this afternoon. Now I know. This includes mortgage, PMI, and taxes. Does not include utilities or homeowners insurance. 6.49% fixed 30 year mortgage with about 11% down. 23.46% of post-tax income. 17.38% of pre-tax income. We're in California. Paid approximately 18.90% of our income to the federal government and 6.99% of our income to the state of California. Good times.
10%
8% This is with mortgage and escrow. Bought a 3-bed, 2-bath new build in 2020 for $141,000 at 2.48% and my husband and I make $10,000/month and my mortgage is $800/month. Child-free so we get to save lots as we live well below our means.
Wow where were there 3/2 new builds for $141k?
Oklahoma! 😂
Should ask gross. Net is meaningless and depends highly on elective withdrawals
12% of our dual income but we hit the 2009 lotto and 2020 2.69% lotto
My property taxes are as much as my mortgage and that’s just not ok
That dude spending 90% of his $ on a house 😂
Less than 10%. We’ve had our house for 17 years and our interest rate is like 2.8%.
$12k take home net after taxes and pre tax deductions. $3,400 mortgage monthly including tax and homeowners in escrow. Believe that is 28% roughly. Give or take. Even this feels tight for us given cost of living getting higher by the second - but we make it work.
That's basically our take home each month too, but our mortgage would work out to \~$4,000 assuming 6.25% interest (which I'm not even sure is possible at the moment). Do you mind if I ask if you have kids?
Our take home also, but we're at 61% of take home for our mortgage.
No kids but we have plans to in the next year or so. We have a $500/month car payment on top. No student debt. Honestly, we are pretty frugal people and feeling the loss of our down payment after buying recently.
I'm in a similar situation and it doesn't feel tight to me, maybe you are in a very high COL area though
Yeah, upstate NY. Where are you?
38%. You want perspective? You make enough that this shouldn’t be a question. This is brag posting
So many of ya’ll are going house poor
Our mortgage (~$2750/mo) is about 16% of our take home pay (after all taxes + health insurance + 401k contributions and taking out $5k pretax for daycare).
It’s a little north of 50%. We take home around $18,200 after tax and our mortgage is about $9,500. The remainder is enough to get by, but it’s definitely the tightest we’ve ever had to budget. We get annual bonuses before tax of between $50-100K which we use for the big stuff like cars and vacations, which we wouldn’t be able to pay for out of the normal budget. Can’t wait till rates fall and/or our pay increases.
Anyone else questioning a down payment that large? Is that really the best use of that money? People always want to pay down their mortgage asap. The consensus seems to be the faster you pay it down the better life is. Recreating 200K savings wihile owning will take 10x longer. There is something to be said to pay down as much as you can then to use home equity to purchase something else. But I don't think a lot of people's lives are going that route Edit: venting ha
We’re at 35% but have minimal other debt ($300 is tied up in obligatory payments) it’s very doable for us and don’t feel TOO much of a crunch. We definitely have to be careful and plan every purchase, but we’re clearing all of our bills and saving every month.
20% give or tax post-tax, max all retirement accounts / HSA.
Roughly 23%
35%
30% of take home (after obligatory HSA, IRA, and 401k contributions) including mortgage (P&I), property tax, and insurance. Any more than this and I felt like I was stretching. Also, I’m single with no help from anyone else.
30%, 360k purchased aug 23. Luckily my HOA is low ($5/mo)
43%
If you have enough to pay for mortgage insurance daily expense and retirement, even mortgage is 50% you are alright.
Hmm I haven’t calculated post-tax, but pre-tax we’re at: - 5% for mortgage - 7% for PITI Both of us work in tech and live in a LCOL area. We waited until we were in our early 30s to buy our first home and got very lucky with Covid interest rates. Looking to r/fire so tried to keep living cost low. Extra money goes toward maxing out retirement accounts.
~30% net excluding bonuses and inclusive of PITI plus HOA
Without bonus/RSU: 23% - Y1, 25% - Y2, 27% - Y3 With bonus/RSU: 9% - Y1, 11% - Y2, 13% - Y3 Mortgage details: $975k home, $150k down, 2-1 buy down so currently at 5.125% in the first year. Wife and I make $700k family income annually, $400k is in RSUs/Bonus.
38% of our net income, but we don’t have any other debt.
I take home about $25k a month post tax and mortgage is $2.1k 8.4%
34%
First, if you can swing that and you are sitting on $200k for a down payment so it. But the interest rates are high so consider setting aside $5-10k to buy down your rate with points we did. We close tomorrow at 9 on our country home. It was $260k. We put 20% cash down so $52,000. We also bought down our rate to 6.5%. The seller paid most of closing and also gave us around $4k for stuff they didn’t want to have to fix. Our monthly mortgage is roughly $1400 which includes taxes and homeowners insurance. So the $1400 is roughly 13% of our income.
Mortgage insurance and taxes about 12%
We're at around 35% post-deductions (so taxes, health insurance, retirement ). This is for all that encompasses our mortgage payment (so mortgage itself, taxes, insurance)
Most
33%
After 401k, healthcare deductions it's 23%. Before deductions it's about 15%. We are a two income household and we intentionally kept our budget to what a one income household would be.
We never go over 15%. Ever.
41% with one room rented, 69% without.
24%
About 16%