Poll - What percentage of your monthly net income goes to your monthly mortgage payment?

[cobaltnv]

I agree with many of the posters on here. I bought a small house in a nice subdivision. My total principle, interest, taxes, homeowners dues, and insurance is ~16% of my take home salary. Like MattH my wife and I enjoy eating out, taking vacations etc and are happy with a smaller more affordable home.

Cheers! 

[demi]

25% including mortgage, taxes, MI...of my 2000 payment, approx 1500 is actual loan amount.  If you add in my Homeowners Association, which is paid separately, its about 28%.  This is in expensive California, so I have, for the state, a relatively inexpensive home (and it looks like my builders are just about to go out of business, or are at least "regrouping."  Wonder what will happen with the 1/2 of the development not built?).

Message Edited by demi on 01-26-2009 10:09 AM

[Anonymous]

My wife and I are currently looking at houses that are in the 25% range, BUT I think that's a very bad and inaccurate way to budget.

What we did instead is we documented our expenses for six months, then averaged them.  And I mean ALL expenses.  You don't have to go THAT crazy, but it's easy to set up a spreadsheet and then be really honest with yourself about what you're spending and will spend.  When you actually add receipts, it's always more than you think.

Gas

Electric

Commuting

Groceries

Etc....

Let's say our take-home salary (after taxes) is $8k.   Our mortgage & taxes is $3k and the total of all anticipated expenses is $4k with childcare...that basically leaves with $1k to save, except for the tax adjustment. 

That's not a lot of buffer. However, more detailed budgeting is much better than arbitrary guidelines or percentages, since everyone's situation varies.  Someone might still be saving money at 40% while someone else might be struggling at 25% if they're paying for 2 kids in daycare.

Message Edited by FICOScott on 01-27-2009 08:54 AM

[Mommyto2boys]

Currently 9% and looking for a larger home but no greater than 16%. I don't see how anyone can afford a home that is 1/3 - 1/2 of their take home pay. I guess you guys are making a ton more than we are...lol!

[vawt]

I'm at 33% or so on my net monthly pay (included P, I, and escrows).  That may seem high, but since I'm single it doesnt bother me (no kids or family type expenses to worry about).  I also put a large amount into my 401k and HSA accounts which really lowers my take home pay during the year.

Getting ready to refinance and it will drop to 28% at today's rates.

Edit: Forgot to note this does not include my yearly bonus payments which changes that percentage dramatically if factored in...

Message Edited by vawt on 01-27-2009 01:12 PM

[Anonymous]

In 2005, my mother and I purchased a 1,800 sf townhome in a gated communty.  Our mortgage, property taxes, HOA dues, and insurance combined equates to 35% of our gross income.  We live in California and it is very costly to live in a safe community here.

[fishbjc]

We're at 30% of DH salary (take home).  He purchased the home in his name only.  We're avid travellers and have lately decided to downsize to 20% to have an additional trip abroad each year.

Having already paid off one home, I'd now like to kick myself in the arse for moving...grrrrrrr

Message Edited by fishbjc on 01-27-2009 05:10 PM

[haulingthescoreup]

About 15% of combined net income. It would be lower, but my net income is low, due to my putting $20.5K into my retirement each year.

[Anonymous]

About 10%. I bought in the mid 90's, before the housing boom. At the time I obtained my Mortgage, I was making significantly less $$ than what I'm earning now. Even in this depressed market, if I were to purchase my home at what it's currently worth, I'd probably have to spend between 38-40% of my income for the payments.