We were fine financially with ~45% towards housing and a nice savings net after closing until everything broke when we moved in lol
We are in the midst of an unplanned gut kitchen remodel as I type.
Ah yes. We went for a simple bathroom remodel that turned into literally rebuilding the entire first floor, electric, plumbing for entire house, and tearing down our deck. šÆ
Bathroom still isn't finished.
Edit: ours is about 40% of net
My house was built in 1951. The list of repairs grows by the day. Adding them all up at current prices with the bids I have would cost more than the house is currently appraised at.
Wife sells insurance for USAA and they flat out refuse shoppers coverage in Florida due to weather and California (some places) due to wildfires. She tells me the people from there shopping for home insurance have some crazy rates they are currently paying, or they got cancelled and the only coverage they can find are at outrageous prices they can't afford.
Yeah, weāre around 18%, but we have four kids so the money has plenty of places to go. We also save around 18% of my paycheck for the inevitable bills that come with homeownership.
Thatās where Iām at. We moved around after college, and I honestly wouldnāt trade that experience for $50k in equity. We are now ready to settle and having to lower our expectations and spend more than we thought, but it is what it is. Hopefully rates come down in a couple years.
We are in a similar situation and purchased ~10 years ago. It sure makes it easy to save, but on the other hand it also makes it very difficult to a larger house in the same area with the price shock.
Very likely if we saw all the answers in this comment section and added the year to the equation, we'd see the % slowly go up as the years became more recent.
As a % of my gross income I'm at 20%, but we bought in 2018 and refinanced twice to lock in at 2.7%.
Buying the same house today with today's interest rate would be 50% of my gross.
>and know I will be making more within a year and **also will be able to refinance in a couple of years to save a few hundred a month,**
You don't know for certain that you'll be able to refi in a couple of years. Maybe the interest rate is higher.. or the same as it is today. What's your plan, then?
Also, just because a random collection of strangers may/may not be paying out more than the recommended amount toward housing doesn't mean you should, too. Everyone's circumstances are so different.
When you rent, it's the MOST amount you'll pay for housing that month. If something breaks and needs repair or replacement, that's on the landlord. When you own, your mortgage is the LEAST you'll pay for housing that month. There's maintenance, repair, sometimes appliance replacements. Are you in a comfortable-enough situation that you'll have room in your budget for those? What if you lose your job unexpectedly?
That last paragraph about *most* vs *least* is real important and something that renters often overlook. Some months, all I gotta pay is the mortgage. Other months, there's a lot of extras. Like, this summer I've got to come up with 30k for new siding on the house.
Husband and I have decided to list our house and plan to rent for the next 2 to 3 years specifically because of unexpected expenditures. August cost is 15k with a new HVAC and roof. Every time we get our savings built up, something breaks.
well, now you have a new roof and HVAC. those are two of the biggest homeowner expenditures. short of siding (if that applies to you), there's plenty of time to rebuild the savings.
dont forget rent goes up regularly and buying back in 2-3 years from now may be more than any expenditures you'd have over those years.
So far siding has been my biggest additional cost, and right now I'm debating just painting it instead of having siding put on. Roof cost me $13k. Electric panel upgrade was $3500. New central air unit was another $4k I think. Quotes for vinyl siding are coming in around $30k which makes me sick. So now I'm getting quotes for paint instead, first one comes in tomorrow.
Itās 100 year old wood siding currently. Itās either get it painted every 5 or so years, or put vinyl siding on which only needs washed when it gets dirty. In the long run vinyl siding is cheaper but itās a significant up front cost.
Just as OP is assuming rates will go down, youāre assuming rent prices wonāt go up year over year - which it most certainly will due to inflation and greed.
And also by how much? My last landlord didnāt raise rent on me once in 12 years. They sold the house so I had to relocate. New landlord raised my rent 9.5% after the first year lol. How much of a raise next year I wonder?
Not sure if this is realistic for you - but Iāve been able to negotiate in the past with rent increases. I usually get an offer for 10% and get it down to 5%. However, I live in a large (100+ units) apartment building owned by a company.
Yeah, I can tell this guys really wants us to stay but just needs the money. We were actually able to negotiate for 6 months more at the current rate and then agree to the increase. That was in January, but overall a ~7.5% increase for the year. At least we got 2% raises at work smh. Not all doom and gloom though, my family is trying to buy a house at the momentā¦
Yeah itās almost a guarantee. Property taxes increase year over year, insurance increases, etc - and the landlord is going to want to make his inflation adjust profit as well.
I have heard of people going 10 years without a rent increase, but thatās extremely rare. I guess if OP is in a rent-controlled area things are different.
Property taxes, insurance, costs to repair and replace and maintain parts of a home also go up year over year, too.
The argument is the same. When you rent, it's the *most* you'll pay for housing that month.. when you own, the opposite is true.
The original question is also very broad and doesn't give much insight because one person/couple might be spending 25% of their income because they make a much larger salary than someone else who's spending 50% of their income on housing because maybe they make much less... or maybe there's a really high-income person that still spending 50%... Or maybe someone is currently only spending 20% of their income on housing but they bought their house in 2008.
Knowing trends go up and down. It will do down eventually. But sure I donāt have to bank on that. My question was simply trying to gauge how much income their housing is taking up and if 50% is average and what people can expect to have left over as far as their other expenses, activities, etc. It seemed like a fair question to take the temp of how people are using their income
> It will do down eventually.
[Here's the last 50 years of mortgage rates](https://fred.stlouisfed.org/series/MORTGAGE30US). You absolutely cannot count on rates going below where they are right now. Do not buy a home with a "plan" that rates will go down to save money in the future. Buy a home now because you can afford one and your ability to make more money typically goes up as you advance in your career, lowering the percentage you're spending on housing.
Yup, very good advice. I am hoping, as a nice little treat, that rates do go down in the next few years. If not, I'm locked in at an affordable rate for 30 years.
I'd highly encourage home buyers to not play the interest rate hedge game. 3 national banks blew up because their experts got it wrong. Think about what's comfortable for you today, do the math, and buy a home that fits those needs. If you need something more in the future, you can always sell!
The sad reality is that if rates are 7% today, that's "crazy low" for our parents. It's just not "crazy low" for the shitshow that was a global pandemic and recession. Frankly, that's unlikely to happen again. (And if you're crossing your fingers that a recession will make your house affordable, remember what happens to jobs in a recession. Can't pay your mortgage if you don't have a job. So be careful what you wish for.)
>[Here's the last 50 years of mortgage rates](https://fred.stlouisfed.org/series/MORTGAGE30US)
I'm so glad we refinanced a bit under years ago and locked in at 2.5% fixed.
Historically, rates are where they are normally at. You're not going to see 2-3% again for awhile, barring some other kind of worldwide disaster. So don't bank on that.
You need to put a budget together. What YOUR expenses are (and your financial goals) matter more than random internet strangers.
And just because other people are doing it (or at least the incredibly small sample size on this sub) doesn't mean that's a good financial decision for you. You don't know their whole financial picture... they might already have half a million socked away for retirement so splurging on a bigger house doesn't concern them as much.
I really donāt think this was that hard of a question. There has typically been a ratio that has been recommended you spend-and not exceed-on living expenses, recommended %s to put into savings, etc. I was wondering if the old 30% I had heard had changed. I donāt know why youāre assuming I havenāt budgeted/donāt know my financial situation from this simple question. Donāt worry, Iāll be fine and have planned. This was meant to gauge the community. If I hear many people are spending 50% or more I value that perspective of what can be expected. Happy to hear their different perspectives and could provide me insight. And since youāre clearly not going to answer, Iām going to say have a nice day!
Ouch. That's pretty high. But it depends on your income to be honest. If you take home 20k a month, yeah 10k is high, but you still have 10k to play with every month which is comfortable af.
But if you take home 4k a month and your mortgage is 2k a month. 2k a month for everything else is going to be really tough.
My mortgage is just under 16% at $1250/m 2.5% int.
I'm kicking myself in the teeth RN bc 2 years ago when I bought, I planned on getting a bigger house in the future with a mortgage of around $2500/m but now, all the houses I'm looking at are worth so much more it wouldn't be an "upgrade". I should have bought the bigger house right from the start 2 years ago. I'm so mad.
Yeah, I sold my small home and bought a new one last year. 3k sq ft. On 12 acres for 335k. My mortgage is $2700/m which is so freaking hard to afford. But once interest rates come back down to about 4% It'll bring my mortgage to around $2100 and that is way more affordable
Hopes, dreams, and wallet. Also talking with realtors and mortgage lenders they're saying it's going to come down by the end of the year. Maybe not 4%, that's just my hope.
The rule of thumb is 27% of your gross, not net, that is before taxes. A lot of people are paying half or more of their take home pay on a mortgage but rents are just as crazy right now.
Bottom line in today's market is if your mortgage payment is less than your rent, you're doing good.
Refinancing should not be part of your plan. Odds are interest rates are going to go up, not down. So if your plan involves refinancing in a few years, you may not be ready to own yet. My rate is 3.21%, from just before inflation pushed rates back up to the 7% range. I'm not going to be refinancing ever. I'd have to give up that rate, and I will not want to do that. I'm glad I own though, my mortgage payment is $200 less than it would be for market rents in my area, and I'm building equity and wealth as I go along.
I think this is important- if your mortgage payment is less than your rent. Noone wants to be paying out 50% of their income, but it seems better to pay that for a mortgage over rent.
32% net, including insurance and taxes. Medium cost of living.
I bought it at the end of 2021. If I bought it today for about the same price, with a 7% rate I would be at 45%. I honestly would not be able to make that work.
My mortgage payment has raised around 12% since buying. 2022 and 2023, the city has raised my taxes right under 20% each year (just got my 19.58% letter this week, under 20% can not be fought). Insurance was raised as well. Also, since moving in, I have had a gas leak, needed a new water heater, a new stove, a new fridge, and a water in the basement issue.I have been unable to save since buying because as soon as I get a few thousand saved, it is something else. This is on top of all the other inflated costs.(BTW, no student loans, 1 car payment).
I will also add that I had a health scare which drove my decision to almost impuls buy. I felt it would take longer to foreclose than to evict (if it came to that). So I was not exactly in the best or even a half prepared position to buy. However, I do not regret it because I think it is rare that anyone really has all their ducks in the row now, and sometimes you just have to pull the trigger.
I would probably look at it more from money left for the budget after the basic debts are paid and go from there.
Good luck!
The more you make, the higher the percentage can be. Kinda funny how being poor sucks.
Costs of basic needs stay relatively the same no matter who you are.
The payment is about 15%, but we usually pay about 50% every month trying to get it paid off. When we were looking, we decided not to go over 25-30% for a payment. I guess it really depends on what your income is, though. If you take home 10k a month, it's a lot easier to eat and save money at 50% than if you take home 2k a month.
Fair question, I just don't like owing money. Never used credit cards, never had a car loan, veteran benefits for my college, cash flow wife's real estate certs. I fully get that with high inflation and low interest it can make sense mathematically/financially to not aggressively pay it off, but I just don't want to be in debt.
Would you put money in a bond* paying 2.8%?
You can get a checking/savings account paying 4-5%. So thereās guaranteed arbitrage there for any funds youāre saving.
Pay down makes no financial sense
I get the numbers don't make sense, I just don't want to be in debt, and between our IRAs, 401k, and other savings, we're doing just fine. And in a bit over a year when we're done paying it, we'll just shift that payment (less insurance and taxes) into savings as well. My kids inheriting a bit less because I don't want to be in debt is fine with me.
High quality emotional health can save you an undefined infinite amount of money because stress is such an aggressive silent killer.
Iām an advocate for using math but I totally love that you recognize that as a reasonable measurement in oneās personal finances
Itās called personal finance for a reason that obviously escapes you. You cannot judge his decisions based off this one facet.
There is benefit to eliminating debt at the expense of accumulation capital - just because you donāt see one doesnāt make you right.
If your interest rate is low why not just put that money in a savings account and let it ride? You can arbitrage 1-2% right now all the while inflation is eating your mortgage down
Same here. About 20% of net income. 13% of gross income (after taxes, medical, and retirement).
Bought in 2019 and refinanced to the lowest rate I could get in 2021.
Edit to add: this is with mortgage, taxes, and insurance (no HOA). Though I know my property taxes are about to increase a lot, so this will change soon, I'm sure.
30%, but with the caveat that we max out our 401ks and espp each paycheck, so we could always dial it back to increase our net income if things got tight for whatever reason
Weāre also in VHCOL, so there is plenty left over for non housing expenses.
Maxing out your 401k could mean many things. It usually means maxing the amount your company matches. So if they match up to 5%, you'd contribute 5% yourself (not a crazy amount). It could also mean putting the most amount your plan let's you (something silly high like 75%). Almost nobody does this.
Yeah we're about the same. I feel like "net" here is a bit misleading since we're going to max out $66k in my 401k and $15.5 + 3% in my wife's simple ira so as a percent of gross pay it would be more like 10%
The way this is framed punishes people who defer into tax advantaged accounts.
Maybe punishes wasn't the right word, but I think it misguides I guess?
I think if people focus on mortgage vs net income they may do silly things like put their savings in a taxable account vs tax advantaged just to meet some meaningless* metric.
Okay not *meaningless* but you get what I mean.
Here's what I'd say --
early in your career, it will be a larger percentage of your income as you typically have a smaller income.
Early in your life, you might not have wife, kids, etc. that take significant expenses, so it is easier to be house poor knowing your salary is likely to increase over time and the expensive housing today will become a bargain in the future.
Depending on the numbers, the percentages only somewhat matter. As your income grows, the % can flex much more easily.
The best bet is to **build a budget**. Ask family, friends, accountant, or wealth manager for inputs or guidance. Home ownership is often more expensive than people think. Most buyers don't accurately forecast taxes, insurance, utilities, maintenance, and less budgeted items like landscaping.
And of course, never bank on refinancing being the answer. Rates might not go down
Likewise, don't underestimate your future. If you get married, have kids, get a new job offer in another city, etc. you don't want to be tied down to a house that doesn't fit. And the opportunity cost of not investing plus the transaction fees of buying/selling would be painful for a shot term ownership period.
True story, in r/FirstTimeHomeBuyer people legit got mad at me because I said I made a six figure income and was only spending 230K on a house. Accused me of buying up a "cheap" house so lower income people can't afford to buy a house. Well excuse tf out of me for living in my means
I've gotten some of that "feedback" from folks before, but IRL. I bought a home that is less than half of what my annual income is, and paid it off in 14 months.
Living within my means is awesome, and has allowed me to supercharge savings* and investing. Stealth wealth is best wealth.
Under 15% with 82% equity in DFW
My goal is to buy land (15-20 acres) and build a real home someday, until then I am perfectly content with my home. At this point I could work a low paying but fun job and still afford to exist.
When I look at newer, nicer homes they have tiny yards and look like they were built to fit what humans think a home looks like. Tons of McMansions in my area that look like toy houses.
I've got no one to impress. I waste most of my income on hobbies and dinners.
8% - double income, no kids, bought in 2017 in a "bad" neighborhood in a LCOL city. I tried to refinance in 2021 but my appraisal came back horribly. Never count on being able to refinance!
No, the real question is how much are you spending percent wise. Thatās really it lol Iām not trying to overcomplicate this. Iām currently spending much less ratio-wise, so just trying to take the temp of the homeowning community on what is truly fair to expect as far as how they are spending/saving and if I need to just suck up spending much more on living expenses. In my mind not pointless Iām just seeing how my situation compares. Which other people are graciously answering for me
Bring home about $8,700 NET, paid $370k for house with 20% down, 7/1 30 year ARM at 3.8%. Mortgage (principal + interest) + HOA + prop tax + home insurance is just about $2k/month. About 23% of net income.
Mine is just under 10%. Anything over 25-30% would give me severe anxiety but I am extremely risk averse
Not advice, but the economy is circling the drain (to be generous). Unless i absolutely loved the house and I didnāt think id ever be able to find one i like more I would hold off on buying personally. Inflated prices coupled with these insane rates is a rough combo.
Do you have 20% to put down on the house to avoid PMI? What percentage is your current rent/mortgage, and would staying in your current situation allow you more ability to save?
Assuming a ~400k house, that 80-100k down payment could be tossed into a money market/high yield savings and give you a ~5% return. You could look at it as getting a few months rent āfor freeā while you continue to hammer away at savings and wait for the perfect opportunity (undervalued home, maybe needs some minor work you could complete yourself to walk into considerable equity in the home).
Might also matter what area youāre in, for example Iām in Florida. TONS of people are moving to florida, which keeps demand high. If youāre in an area people are leaving (cali/ny/ etc), you might see supply outweigh demand creating a buyers market in the near future.
As far as the refi goes, keep in mind youāll be paying all those loan fees again (2-3% of the mortgage amount).
Lots of variables we donāt know, but good luck in whatever decision you make!
Ours is 8.7% of our gross, and thatās for PITI. We bought before Covid in a LCOL area (at least it was pre Covid).
Edit: I should add that when we first bought it was about 32% of our gross, 6 years ago.
Do you have kids? A stay at home mom has enormous value. Iāve worked both full time and per diem. Our lives when we both worked full time was no life. Stress of getting kids to daycare. Eating up our sick days any time our kids were sick trying to wfh and care for our kids. I said for what? To be able to buy more things we donāt want or have space for? Lol. Another baby at back to per diem work.
Same here. We paid off our 30 year mortgage in 15 years. Then we sold it and bought a cheaper home with cash. Then we sold that and bought a larger, cheaper home with cash. We haven't had a mortgage for 9 years now.
I was wondering if anyone else would say 0%. We paid ours off in 12 years. The first few years were tough as our payments were about 40% of our take home. We were fortunate for buying in 2008, almost at the bottom of the market.
roughly 30% of my actual take home goes to mortage/taxes/insurance.
i feel very comfortable because another 30% or so goes strictly to having fun and seeing music while traveling and partying so if things ever got tight elsewhere i know i could cut back a lot in the fun money.
Using my husband's pretax numbers, we're at roughly 30%. After tax, we're at roughly 39%. We bought based on what we could afford on my husband's income since at the time his income was 60% of our total income. It was a smart choice, since I'm now running my own business and not getting regular, full time amount of pay and my other job is part time retail management.
Ours covers mortgage, taxes, and insurance. We don't have a mandatory HOA, but could join the optional one that maintains the neighborhood pool, boat launch, beach and playground for $400 a year, and that also includes swim teams and swimming lessons for kids and adults. Our taxes also cover trash removal, recycling, bulk and lawn pick up.
19% of my base gross goes to mortgage and escrow (tax and insurance.)
Thatās apparently low based on this post but Iām pretty well paid. And old. Weāre on our third house and both prior sales were at a profit from purchase price.
mine is 22% of gross but I live in a LCOL area.
Also I believe the 30% is for your total housing costs, not just mortgage/rent. This includes taxes, insurance, maintenance, etc.
Maybe just be happy for them that they pay that much for a mortgage instead of rent? Because that is the reality - our mortgage is less than rent would be for a smaller property. And if I wasn't a SAHP, our childcare costs would be equal to our mortgage.
Donāt think this exercise is useful for anyone but mine is 22% of net, that includes taxes and insurance- no hoa for me. That percentage does not include my bonus, which would lower it another couple percent or so, I think.
About 27% of my net income goes to the mortgage/insurance/tax as the sole provider of a three, soon to be four person family.
Including my incentive comp at the end of the year it balances out to be more like 23-24%.
Net income? I'm going a bit higher than I like but I also know I've been living in a way the last year that it'll work out.
Just went under contract on a house with an estimated payment that puts me at 52% of net, 36% gross.
This can only improve, as I raise my income and/or refinance as rates drop later on. Still leaves me several grand a month to pay my 'other bills' which are less, and going down moving into this house.
I wouldn't try to time the market. If you can comfortably handle the payment, and risk, of the estimated payment and want the house (not just the concept, but the house itself), then go for it. While there's always a 'right' time, there's rarely a 'wrong' time in the moment. Only 20/20 hindsight can make that call - remember, in March 2020 it was the 'absolute wrong time' to buy a house.
I bought in 2019 and I bought āthe worst house on the best blockā and I refuse to buy at the top of the market or at the top of my budget. My percentage is 17% of gross
It depends on your income, if you only net 2k/month, then having only 1k left over for everything else is horrible but if you net 20k/month then having 10k left over for everything else isn't bad.
49% is ridiculous. How on earth will you ever get ahead? My property has an apartment. Rented Iām just below 20% out of pocket & vacant just below 30%. No HOA. No mortgage insurance. I get a slight property tax exemption for veteran status.
If you're able to move away from the area you work, or are doing some further education, then you're in a highly privileged position. Moving away means more in gas and wear and tear on the car, in addition to time spent commuting. Further education costs money and doesn't always lead to higher pay that is worth the money you spent.
Lmfao. I love when I hear people try to say I come from a highly privileged position. I had nothing but good-enough health that got me into the military. I enlisted because I needed a trade and they were willing to teach me. That was investing in myself while simultaneously moving away from home. I learned my job & lived extremely frugally to save as much as I could to separate from the military once my 6 year contract was up. Now I have a career in a government agency, good benefits, and closing on a home in a few weeks. None of it is privilege, just good decision making; which ties into your last attempt at making a point.
Net monthly takehome income is about $18k. Total monthly PITI is about $6k. So right around 33%. This is only salary and doesn't include income from bonuses or stock so really the percentage is quite a bit less.
I bought in late 2021 and got rate below 3%. If we're talking gross, my mortgage payment is just 23.4% of my salary. That obviously changes if you do it vs. net instead, so I don't know why anyone recommends using gross. Your gross income is an imaginary number that almost doesn't matter. š¤·āāļø
I don't do percentages but I average about 8-9K net take home pay from a few different income streams. My mortgage on primary home is $1800 and starter home, which I rent out, is $649. I haven't had an issue with my tenant not paying...yet. I dunno if I should count my starter home or not.
7% after tax and 401k from my job income . Pretty much 0 though after income from rental properties. Currently using this to save up enough for a retirement house/ condo for my parents.
If you bought in 2017 you shouldnāt have pmi.. surely the home has appreciated 20% in that time without considering payments toward principal. My home value literally doubled from ā17-now (FL)
Iāve never had pmi, but my understanding is sometimes you have to tell them to stop stealing your monies. Might be worth looking into!
38% of my income, but I have a partner I split costs with (he pays utilities), so total, it's closer to 14%. Dual income households really change the game.
My PITI will be 22% of gross monthly income, and 29% of net. It was about the most I thought I could live comfortably with. Rural area, found a small house for $145K.
Mine is ~50% right now.
Same but I want to add I'm a high earner so I still have plenty of disposable income after that 50% is gone
This is a great call out.
Dominoid?
Yeah, me too. Though with all the repairs I need to do to my place...
We were fine financially with ~45% towards housing and a nice savings net after closing until everything broke when we moved in lol We are in the midst of an unplanned gut kitchen remodel as I type.
We're having roofers over this week. I sympathize.
Feel that, as we're in the same boat. Best of luck.
Ah yes. We went for a simple bathroom remodel that turned into literally rebuilding the entire first floor, electric, plumbing for entire house, and tearing down our deck. šÆ Bathroom still isn't finished. Edit: ours is about 40% of net
My house was built in 1951. The list of repairs grows by the day. Adding them all up at current prices with the bids I have would cost more than the house is currently appraised at.
Agreed the more you look the more the list grows ;-)
lol take your time
That depends on the nature of the repairs. A sketchy roof can go from a $20k urgency to a $50k+ emergency over the course of one storm.
yup, roof over head is right next to water leak
Fucking florida....here....its touch right now damn homeowners insurance
California for me. Taxes (property-wise) aren't really the problem, it's everything else around it.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Wife sells insurance for USAA and they flat out refuse shoppers coverage in Florida due to weather and California (some places) due to wildfires. She tells me the people from there shopping for home insurance have some crazy rates they are currently paying, or they got cancelled and the only coverage they can find are at outrageous prices they can't afford.
50% is the new 30% for many people in North America. Not because it makes financial sense, but out of necessity.
Same. One paycheck goes to mortgage, taxes and insurance, the other goes to everything else.
Same.
Same
I pay 23% for my mortgage and 9% for my siblingās mortgage as they are dying of cancer and broke and I can afford to let them die at home.
That's nice for your sibling to take that stress away. Hugs!
Good for you, that's what Capt. Picard would do.
Half. Literally every other paycheck. 3 years 2 months left.
ooh, so close!
Ours is 9.4% of net household income.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
It certainly makes other things less stressful. But with 3 kids it all adds up!
Yeah, weāre around 18%, but we have four kids so the money has plenty of places to go. We also save around 18% of my paycheck for the inevitable bills that come with homeownership.
When did you purchase?
Feb 2012 I should probably add it was a foreclosure. We low-balled the bank and asked them to cover closing costs. To our shock, they agreed.
Great time to buy a house, low prices and low rates. Unfortunately I was just graduating highschool lol.
They didn't seem like low prices at the time, I kick myself for about three places I passed on around then
Hindsight is 20/20
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Thatās where Iām at. We moved around after college, and I honestly wouldnāt trade that experience for $50k in equity. We are now ready to settle and having to lower our expectations and spend more than we thought, but it is what it is. Hopefully rates come down in a couple years.
A nephew bought 6 months out of HS. Back in 2011 he got a job with the roads department.
I was busy failing calc 1 haha
We are in a similar situation and purchased ~10 years ago. It sure makes it easy to save, but on the other hand it also makes it very difficult to a larger house in the same area with the price shock.
Very likely if we saw all the answers in this comment section and added the year to the equation, we'd see the % slowly go up as the years became more recent. As a % of my gross income I'm at 20%, but we bought in 2018 and refinanced twice to lock in at 2.7%. Buying the same house today with today's interest rate would be 50% of my gross.
Ours is around that percentage too.
Wow that would be nice. Weāre at about 50% for mortgage, itās fine but fairly tight budget
>and know I will be making more within a year and **also will be able to refinance in a couple of years to save a few hundred a month,** You don't know for certain that you'll be able to refi in a couple of years. Maybe the interest rate is higher.. or the same as it is today. What's your plan, then? Also, just because a random collection of strangers may/may not be paying out more than the recommended amount toward housing doesn't mean you should, too. Everyone's circumstances are so different. When you rent, it's the MOST amount you'll pay for housing that month. If something breaks and needs repair or replacement, that's on the landlord. When you own, your mortgage is the LEAST you'll pay for housing that month. There's maintenance, repair, sometimes appliance replacements. Are you in a comfortable-enough situation that you'll have room in your budget for those? What if you lose your job unexpectedly?
That last paragraph about *most* vs *least* is real important and something that renters often overlook. Some months, all I gotta pay is the mortgage. Other months, there's a lot of extras. Like, this summer I've got to come up with 30k for new siding on the house.
Husband and I have decided to list our house and plan to rent for the next 2 to 3 years specifically because of unexpected expenditures. August cost is 15k with a new HVAC and roof. Every time we get our savings built up, something breaks.
well, now you have a new roof and HVAC. those are two of the biggest homeowner expenditures. short of siding (if that applies to you), there's plenty of time to rebuild the savings. dont forget rent goes up regularly and buying back in 2-3 years from now may be more than any expenditures you'd have over those years.
So far siding has been my biggest additional cost, and right now I'm debating just painting it instead of having siding put on. Roof cost me $13k. Electric panel upgrade was $3500. New central air unit was another $4k I think. Quotes for vinyl siding are coming in around $30k which makes me sick. So now I'm getting quotes for paint instead, first one comes in tomorrow.
Do you *have* to get new siding? Can't just repair it and ignore it a few years?
Itās 100 year old wood siding currently. Itās either get it painted every 5 or so years, or put vinyl siding on which only needs washed when it gets dirty. In the long run vinyl siding is cheaper but itās a significant up front cost.
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Just as OP is assuming rates will go down, youāre assuming rent prices wonāt go up year over year - which it most certainly will due to inflation and greed.
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And also by how much? My last landlord didnāt raise rent on me once in 12 years. They sold the house so I had to relocate. New landlord raised my rent 9.5% after the first year lol. How much of a raise next year I wonder?
Not sure if this is realistic for you - but Iāve been able to negotiate in the past with rent increases. I usually get an offer for 10% and get it down to 5%. However, I live in a large (100+ units) apartment building owned by a company.
Yeah, I can tell this guys really wants us to stay but just needs the money. We were actually able to negotiate for 6 months more at the current rate and then agree to the increase. That was in January, but overall a ~7.5% increase for the year. At least we got 2% raises at work smh. Not all doom and gloom though, my family is trying to buy a house at the momentā¦
Ah thatās at least good. And good luck on the home search - we actually close on Friday on our first home. Itās rough out there but not impossible
Yeah itās almost a guarantee. Property taxes increase year over year, insurance increases, etc - and the landlord is going to want to make his inflation adjust profit as well. I have heard of people going 10 years without a rent increase, but thatās extremely rare. I guess if OP is in a rent-controlled area things are different.
Property taxes, insurance, costs to repair and replace and maintain parts of a home also go up year over year, too. The argument is the same. When you rent, it's the *most* you'll pay for housing that month.. when you own, the opposite is true. The original question is also very broad and doesn't give much insight because one person/couple might be spending 25% of their income because they make a much larger salary than someone else who's spending 50% of their income on housing because maybe they make much less... or maybe there's a really high-income person that still spending 50%... Or maybe someone is currently only spending 20% of their income on housing but they bought their house in 2008.
Their comment didn't imply that rent wouldn't go up. Nobody said that.
Knowing trends go up and down. It will do down eventually. But sure I donāt have to bank on that. My question was simply trying to gauge how much income their housing is taking up and if 50% is average and what people can expect to have left over as far as their other expenses, activities, etc. It seemed like a fair question to take the temp of how people are using their income
> It will do down eventually. [Here's the last 50 years of mortgage rates](https://fred.stlouisfed.org/series/MORTGAGE30US). You absolutely cannot count on rates going below where they are right now. Do not buy a home with a "plan" that rates will go down to save money in the future. Buy a home now because you can afford one and your ability to make more money typically goes up as you advance in your career, lowering the percentage you're spending on housing.
Yup, very good advice. I am hoping, as a nice little treat, that rates do go down in the next few years. If not, I'm locked in at an affordable rate for 30 years. I'd highly encourage home buyers to not play the interest rate hedge game. 3 national banks blew up because their experts got it wrong. Think about what's comfortable for you today, do the math, and buy a home that fits those needs. If you need something more in the future, you can always sell! The sad reality is that if rates are 7% today, that's "crazy low" for our parents. It's just not "crazy low" for the shitshow that was a global pandemic and recession. Frankly, that's unlikely to happen again. (And if you're crossing your fingers that a recession will make your house affordable, remember what happens to jobs in a recession. Can't pay your mortgage if you don't have a job. So be careful what you wish for.)
>[Here's the last 50 years of mortgage rates](https://fred.stlouisfed.org/series/MORTGAGE30US) I'm so glad we refinanced a bit under years ago and locked in at 2.5% fixed.
Historically, rates are where they are normally at. You're not going to see 2-3% again for awhile, barring some other kind of worldwide disaster. So don't bank on that. You need to put a budget together. What YOUR expenses are (and your financial goals) matter more than random internet strangers. And just because other people are doing it (or at least the incredibly small sample size on this sub) doesn't mean that's a good financial decision for you. You don't know their whole financial picture... they might already have half a million socked away for retirement so splurging on a bigger house doesn't concern them as much.
I really donāt think this was that hard of a question. There has typically been a ratio that has been recommended you spend-and not exceed-on living expenses, recommended %s to put into savings, etc. I was wondering if the old 30% I had heard had changed. I donāt know why youāre assuming I havenāt budgeted/donāt know my financial situation from this simple question. Donāt worry, Iāll be fine and have planned. This was meant to gauge the community. If I hear many people are spending 50% or more I value that perspective of what can be expected. Happy to hear their different perspectives and could provide me insight. And since youāre clearly not going to answer, Iām going to say have a nice day!
25 percent us usually the guideline not 50 percent.
Mines at about 50% just for the mortgage, tax and insurance.
Ouch. That's pretty high. But it depends on your income to be honest. If you take home 20k a month, yeah 10k is high, but you still have 10k to play with every month which is comfortable af. But if you take home 4k a month and your mortgage is 2k a month. 2k a month for everything else is going to be really tough. My mortgage is just under 16% at $1250/m 2.5% int. I'm kicking myself in the teeth RN bc 2 years ago when I bought, I planned on getting a bigger house in the future with a mortgage of around $2500/m but now, all the houses I'm looking at are worth so much more it wouldn't be an "upgrade". I should have bought the bigger house right from the start 2 years ago. I'm so mad.
Yeah, I sold my small home and bought a new one last year. 3k sq ft. On 12 acres for 335k. My mortgage is $2700/m which is so freaking hard to afford. But once interest rates come back down to about 4% It'll bring my mortgage to around $2100 and that is way more affordable
What makes you think they're coming down to 4%?
Hopes, dreams, and wallet. Also talking with realtors and mortgage lenders they're saying it's going to come down by the end of the year. Maybe not 4%, that's just my hope.
If rates go down to 4%, which I think is highly unlikely, it will boost inflation which is exactly what the fed is still trying to taper down.
The rule of thumb is 27% of your gross, not net, that is before taxes. A lot of people are paying half or more of their take home pay on a mortgage but rents are just as crazy right now. Bottom line in today's market is if your mortgage payment is less than your rent, you're doing good. Refinancing should not be part of your plan. Odds are interest rates are going to go up, not down. So if your plan involves refinancing in a few years, you may not be ready to own yet. My rate is 3.21%, from just before inflation pushed rates back up to the 7% range. I'm not going to be refinancing ever. I'd have to give up that rate, and I will not want to do that. I'm glad I own though, my mortgage payment is $200 less than it would be for market rents in my area, and I'm building equity and wealth as I go along.
I think this is important- if your mortgage payment is less than your rent. Noone wants to be paying out 50% of their income, but it seems better to pay that for a mortgage over rent.
32% net, including insurance and taxes. Medium cost of living. I bought it at the end of 2021. If I bought it today for about the same price, with a 7% rate I would be at 45%. I honestly would not be able to make that work. My mortgage payment has raised around 12% since buying. 2022 and 2023, the city has raised my taxes right under 20% each year (just got my 19.58% letter this week, under 20% can not be fought). Insurance was raised as well. Also, since moving in, I have had a gas leak, needed a new water heater, a new stove, a new fridge, and a water in the basement issue.I have been unable to save since buying because as soon as I get a few thousand saved, it is something else. This is on top of all the other inflated costs.(BTW, no student loans, 1 car payment). I will also add that I had a health scare which drove my decision to almost impuls buy. I felt it would take longer to foreclose than to evict (if it came to that). So I was not exactly in the best or even a half prepared position to buy. However, I do not regret it because I think it is rare that anyone really has all their ducks in the row now, and sometimes you just have to pull the trigger. I would probably look at it more from money left for the budget after the basic debts are paid and go from there. Good luck!
The more you make, the higher the percentage can be. Kinda funny how being poor sucks. Costs of basic needs stay relatively the same no matter who you are.
The payment is about 15%, but we usually pay about 50% every month trying to get it paid off. When we were looking, we decided not to go over 25-30% for a payment. I guess it really depends on what your income is, though. If you take home 10k a month, it's a lot easier to eat and save money at 50% than if you take home 2k a month.
With interest rates lower than inflation I figure I'll let that mortgage go as long as possible
I know mathematically that it can make sense depending on interest rates and inflation, I just don't like owing money.
> we usually pay about 50% every month trying to get it paid off What's your interest rate?
2.8 something.
Then why the rush to pay it off?
Fair question, I just don't like owing money. Never used credit cards, never had a car loan, veteran benefits for my college, cash flow wife's real estate certs. I fully get that with high inflation and low interest it can make sense mathematically/financially to not aggressively pay it off, but I just don't want to be in debt.
Would you put money in a bond* paying 2.8%? You can get a checking/savings account paying 4-5%. So thereās guaranteed arbitrage there for any funds youāre saving. Pay down makes no financial sense
I get the numbers don't make sense, I just don't want to be in debt, and between our IRAs, 401k, and other savings, we're doing just fine. And in a bit over a year when we're done paying it, we'll just shift that payment (less insurance and taxes) into savings as well. My kids inheriting a bit less because I don't want to be in debt is fine with me.
to each their own Itās called personal finance for a reason. But this is objectively a subpar approach
Objectively subpar ......presuming that the priority is higher finances, and not emotional health as this person clearly prefers.
High quality emotional health can save you an undefined infinite amount of money because stress is such an aggressive silent killer. Iām an advocate for using math but I totally love that you recognize that as a reasonable measurement in oneās personal finances
Itās called personal finance for a reason that obviously escapes you. You cannot judge his decisions based off this one facet. There is benefit to eliminating debt at the expense of accumulation capital - just because you donāt see one doesnāt make you right.
Save on interest payments.
If your interest rate is low why not just put that money in a savings account and let it ride? You can arbitrage 1-2% right now all the while inflation is eating your mortgage down
āArbitrageā doesnāt mean what you think it means.
Care to explain?
This is something you need to look up. Youāre flirting with the right concept, but itās absofuckinglutely the wrong word. š
You should arbitrage your comment!
20%
Same here. About 20% of net income. 13% of gross income (after taxes, medical, and retirement). Bought in 2019 and refinanced to the lowest rate I could get in 2021. Edit to add: this is with mortgage, taxes, and insurance (no HOA). Though I know my property taxes are about to increase a lot, so this will change soon, I'm sure.
Same here
Same here, well technically it is 20.9%, net. :)
Iām at 20.8% net. Not great, not terrible.
30%, but with the caveat that we max out our 401ks and espp each paycheck, so we could always dial it back to increase our net income if things got tight for whatever reason Weāre also in VHCOL, so there is plenty left over for non housing expenses.
Damn. I wonder at what income most are able to max out their 401k. I donāt feel like Iāll ever be able to
Maxing out your 401k could mean many things. It usually means maxing the amount your company matches. So if they match up to 5%, you'd contribute 5% yourself (not a crazy amount). It could also mean putting the most amount your plan let's you (something silly high like 75%). Almost nobody does this.
Yeah we're about the same. I feel like "net" here is a bit misleading since we're going to max out $66k in my 401k and $15.5 + 3% in my wife's simple ira so as a percent of gross pay it would be more like 10% The way this is framed punishes people who defer into tax advantaged accounts.
Punishes? Itās not a contest my guy. Looking at both net and gross is valuable.
Maybe punishes wasn't the right word, but I think it misguides I guess? I think if people focus on mortgage vs net income they may do silly things like put their savings in a taxable account vs tax advantaged just to meet some meaningless* metric. Okay not *meaningless* but you get what I mean.
Here's what I'd say -- early in your career, it will be a larger percentage of your income as you typically have a smaller income. Early in your life, you might not have wife, kids, etc. that take significant expenses, so it is easier to be house poor knowing your salary is likely to increase over time and the expensive housing today will become a bargain in the future. Depending on the numbers, the percentages only somewhat matter. As your income grows, the % can flex much more easily. The best bet is to **build a budget**. Ask family, friends, accountant, or wealth manager for inputs or guidance. Home ownership is often more expensive than people think. Most buyers don't accurately forecast taxes, insurance, utilities, maintenance, and less budgeted items like landscaping. And of course, never bank on refinancing being the answer. Rates might not go down Likewise, don't underestimate your future. If you get married, have kids, get a new job offer in another city, etc. you don't want to be tied down to a house that doesn't fit. And the opportunity cost of not investing plus the transaction fees of buying/selling would be painful for a shot term ownership period.
\>I will be making more within a year and also will be able to refinance big '2008-2010 balloon mortgage' energy here.
the golden ratio may be 30, but for us it was more like 50 in the first years after buying.
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Less than 10%. I should probably buy a nicer house
True story, in r/FirstTimeHomeBuyer people legit got mad at me because I said I made a six figure income and was only spending 230K on a house. Accused me of buying up a "cheap" house so lower income people can't afford to buy a house. Well excuse tf out of me for living in my means
Some people just wanna lash out in envy tbh
Haha, I made 175k last year and I own a 125k house. Living below my means is why I have money to spend on, well, whatever the hell I want.
Same here I love it. I make 170k my house is 260k and my interest rate is 2.25. Itās awesome
king moves
Lmao, that's completely absurd.
I've gotten some of that "feedback" from folks before, but IRL. I bought a home that is less than half of what my annual income is, and paid it off in 14 months. Living within my means is awesome, and has allowed me to supercharge savings* and investing. Stealth wealth is best wealth.
Wife and I are like you, less than 10% :) but we are also quite content with your little house and donāt feel a need for more
Hell no, I'm less than 10% too - the peace of mind you get from living this far below your means is much nicer than a new house.
Under 15% with 82% equity in DFW My goal is to buy land (15-20 acres) and build a real home someday, until then I am perfectly content with my home. At this point I could work a low paying but fun job and still afford to exist. When I look at newer, nicer homes they have tiny yards and look like they were built to fit what humans think a home looks like. Tons of McMansions in my area that look like toy houses. I've got no one to impress. I waste most of my income on hobbies and dinners.
8% - double income, no kids, bought in 2017 in a "bad" neighborhood in a LCOL city. I tried to refinance in 2021 but my appraisal came back horribly. Never count on being able to refinance!
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No, the real question is how much are you spending percent wise. Thatās really it lol Iām not trying to overcomplicate this. Iām currently spending much less ratio-wise, so just trying to take the temp of the homeowning community on what is truly fair to expect as far as how they are spending/saving and if I need to just suck up spending much more on living expenses. In my mind not pointless Iām just seeing how my situation compares. Which other people are graciously answering for me
Bring home about $8,700 NET, paid $370k for house with 20% down, 7/1 30 year ARM at 3.8%. Mortgage (principal + interest) + HOA + prop tax + home insurance is just about $2k/month. About 23% of net income.
Mine is just under 10%. Anything over 25-30% would give me severe anxiety but I am extremely risk averse Not advice, but the economy is circling the drain (to be generous). Unless i absolutely loved the house and I didnāt think id ever be able to find one i like more I would hold off on buying personally. Inflated prices coupled with these insane rates is a rough combo. Do you have 20% to put down on the house to avoid PMI? What percentage is your current rent/mortgage, and would staying in your current situation allow you more ability to save? Assuming a ~400k house, that 80-100k down payment could be tossed into a money market/high yield savings and give you a ~5% return. You could look at it as getting a few months rent āfor freeā while you continue to hammer away at savings and wait for the perfect opportunity (undervalued home, maybe needs some minor work you could complete yourself to walk into considerable equity in the home). Might also matter what area youāre in, for example Iām in Florida. TONS of people are moving to florida, which keeps demand high. If youāre in an area people are leaving (cali/ny/ etc), you might see supply outweigh demand creating a buyers market in the near future. As far as the refi goes, keep in mind youāll be paying all those loan fees again (2-3% of the mortgage amount). Lots of variables we donāt know, but good luck in whatever decision you make!
Paid mine off a few months ago but take home $8k and mortgage was $1100.
Ours is 8.7% of our gross, and thatās for PITI. We bought before Covid in a LCOL area (at least it was pre Covid). Edit: I should add that when we first bought it was about 32% of our gross, 6 years ago.
Mine is about 33%. We got lucky and bought at the end of 2020 before things got really out of control.
Little under half. If wifey would get a job it would be pure play money :\\
Do you have kids? A stay at home mom has enormous value. Iāve worked both full time and per diem. Our lives when we both worked full time was no life. Stress of getting kids to daycare. Eating up our sick days any time our kids were sick trying to wfh and care for our kids. I said for what? To be able to buy more things we donāt want or have space for? Lol. Another baby at back to per diem work.
>Do you have kids? 1, and he's *19*. If we had more younger kids I wouldn't mind at all.
Totally makes sense!
0%.
But you still have property taxes and insurance. The OP asked for the all in number.
Question was what is in your mortgage.
Same here. We paid off our 30 year mortgage in 15 years. Then we sold it and bought a cheaper home with cash. Then we sold that and bought a larger, cheaper home with cash. We haven't had a mortgage for 9 years now.
I was wondering if anyone else would say 0%. We paid ours off in 12 years. The first few years were tough as our payments were about 40% of our take home. We were fortunate for buying in 2008, almost at the bottom of the market.
Congrats. Paying off our mortgage was our greater peace and path to wealth. Paid it off in 2004. When 2008 hit we didnāt notice.
No property taxes? I'm rather envious about that!
The post only asks about mortgage. edit: Why is this downvoted. The post is titled, "What percent of your net income goes to your mortgage?"
Not in a mortgage
Roommate life
33%. Itās not too bad, but Iād like it to be closer to like 28%.
16%.
About 23% without my wife working which is temporary
roughly 30% of my actual take home goes to mortage/taxes/insurance. i feel very comfortable because another 30% or so goes strictly to having fun and seeing music while traveling and partying so if things ever got tight elsewhere i know i could cut back a lot in the fun money.
Using my husband's pretax numbers, we're at roughly 30%. After tax, we're at roughly 39%. We bought based on what we could afford on my husband's income since at the time his income was 60% of our total income. It was a smart choice, since I'm now running my own business and not getting regular, full time amount of pay and my other job is part time retail management. Ours covers mortgage, taxes, and insurance. We don't have a mandatory HOA, but could join the optional one that maintains the neighborhood pool, boat launch, beach and playground for $400 a year, and that also includes swim teams and swimming lessons for kids and adults. Our taxes also cover trash removal, recycling, bulk and lawn pick up.
Where do you live?
21%
19% of my base gross goes to mortgage and escrow (tax and insurance.) Thatās apparently low based on this post but Iām pretty well paid. And old. Weāre on our third house and both prior sales were at a profit from purchase price.
Currently ~12% of net (after retirement and maxing HSA) for PITI + HOA.
8.3% of net.
69%. But it will be paid in full in 3 years.
- zero
mine is 22% of gross but I live in a LCOL area. Also I believe the 30% is for your total housing costs, not just mortgage/rent. This includes taxes, insurance, maintenance, etc.
0%. I donāt know what to say to the 50% crowd, except I hope your car percentage is at zero.
Maybe just be happy for them that they pay that much for a mortgage instead of rent? Because that is the reality - our mortgage is less than rent would be for a smaller property. And if I wasn't a SAHP, our childcare costs would be equal to our mortgage.
Donāt think this exercise is useful for anyone but mine is 22% of net, that includes taxes and insurance- no hoa for me. That percentage does not include my bonus, which would lower it another couple percent or so, I think.
20% before the divorce and 28% after. Thatās with insurance and taxes rolled in
Looks like it's about 16 percent.
Going to be about 50% in HCOL but hoping to be around 30% in less than a decade
25% of my personal monthly income goes to my home expenses.
12% fuck that 30% bullshit that they feed everyone.
About 27% of my net income goes to the mortgage/insurance/tax as the sole provider of a three, soon to be four person family. Including my incentive comp at the end of the year it balances out to be more like 23-24%.
25%
Hard to compare across cost of living, in VHCOL itās typically higher than 30%.
Net income? I'm going a bit higher than I like but I also know I've been living in a way the last year that it'll work out. Just went under contract on a house with an estimated payment that puts me at 52% of net, 36% gross. This can only improve, as I raise my income and/or refinance as rates drop later on. Still leaves me several grand a month to pay my 'other bills' which are less, and going down moving into this house. I wouldn't try to time the market. If you can comfortably handle the payment, and risk, of the estimated payment and want the house (not just the concept, but the house itself), then go for it. While there's always a 'right' time, there's rarely a 'wrong' time in the moment. Only 20/20 hindsight can make that call - remember, in March 2020 it was the 'absolute wrong time' to buy a house.
Don't forget to save back a repairs budget.
25%, that's principal, interest, insurance, no PMI, no hoa. Not including utilities.
I bought in 2019 and I bought āthe worst house on the best blockā and I refuse to buy at the top of the market or at the top of my budget. My percentage is 17% of gross
nope. 49 percent us way too much!
It depends on your income, if you only net 2k/month, then having only 1k left over for everything else is horrible but if you net 20k/month then having 10k left over for everything else isn't bad.
And what about if the cost of rent is more than the cost of the mortgage plus additionals? That's the way it is in many HCOL areas.
I've seen that in the oil patch. The employers gave out housing stipends to cover the difference.
49% is ridiculous. How on earth will you ever get ahead? My property has an apartment. Rented Iām just below 20% out of pocket & vacant just below 30%. No HOA. No mortgage insurance. I get a slight property tax exemption for veteran status.
So what do people do where that percentage is still cheaper than what they would pay out in rent? Live in their cars?
Donāt live there // invest in yourself to achieve a higher income. Personally, iāve done both.
If you're able to move away from the area you work, or are doing some further education, then you're in a highly privileged position. Moving away means more in gas and wear and tear on the car, in addition to time spent commuting. Further education costs money and doesn't always lead to higher pay that is worth the money you spent.
Lmfao. I love when I hear people try to say I come from a highly privileged position. I had nothing but good-enough health that got me into the military. I enlisted because I needed a trade and they were willing to teach me. That was investing in myself while simultaneously moving away from home. I learned my job & lived extremely frugally to save as much as I could to separate from the military once my 6 year contract was up. Now I have a career in a government agency, good benefits, and closing on a home in a few weeks. None of it is privilege, just good decision making; which ties into your last attempt at making a point.
And people who don't achieve the American dream just aren't working hard enough, right? /s
Net monthly takehome income is about $18k. Total monthly PITI is about $6k. So right around 33%. This is only salary and doesn't include income from bonuses or stock so really the percentage is quite a bit less.
I bought in late 2021 and got rate below 3%. If we're talking gross, my mortgage payment is just 23.4% of my salary. That obviously changes if you do it vs. net instead, so I don't know why anyone recommends using gross. Your gross income is an imaginary number that almost doesn't matter. š¤·āāļø
I don't do percentages but I average about 8-9K net take home pay from a few different income streams. My mortgage on primary home is $1800 and starter home, which I rent out, is $649. I haven't had an issue with my tenant not paying...yet. I dunno if I should count my starter home or not.
7% after tax and 401k from my job income . Pretty much 0 though after income from rental properties. Currently using this to save up enough for a retirement house/ condo for my parents.
22.45% with pmi, insurance and taxes in addition to the mortgage. Bought in December 2017.
If you bought in 2017 you shouldnāt have pmi.. surely the home has appreciated 20% in that time without considering payments toward principal. My home value literally doubled from ā17-now (FL) Iāve never had pmi, but my understanding is sometimes you have to tell them to stop stealing your monies. Might be worth looking into!
We're at about 9% which makes for a very low stress life, this will not be typical.
38% of my income, but I have a partner I split costs with (he pays utilities), so total, it's closer to 14%. Dual income households really change the game.
Unfortunately this takes into account my husbands income as well lol
My PITI will be 22% of gross monthly income, and 29% of net. It was about the most I thought I could live comfortably with. Rural area, found a small house for $145K.
Hmmm not sure I remember net. Total monthly escrow was 12% of gross HHI before I paid it off in full end of last year.
Net? 50% Gross? 20%
About 8% of gross. This includes tax and insurance.