What percentage of your income goes toward your mortgage payment?
August 9, 2010 · Posted in Qualify For A Mortgage
We’re getting ready to buy a house and I’m just curious about what percentage of their income people are comfortable with spending on their mortgage. What is your mortgage payment (including taxes and insurance) and your household income, and are you comfortable with your mortgage payments?
Thanks!
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To keep from getting in over your head and being financially stressed, your monthly total mortgage payment (PITI) should not exceed 25% of your take-home pay.
Lenders will tell you 30% or more, but that school of thought leads to families struggling with the reality of home ownership and all the other expenses.
Being a home owner is expensive: regular maintenance (air filters, cleaning products, light bulbs, etc.), major repairs like heat & air, roofs, window replacement, painting), yard upkeep, appliance repair and replacement, plumbing emergencies, garage door repair, furnishings and replacing old furniture from time to time, insect and termite control, fence replacement, and the list goes on and on.
Don’t buy the most expensive house your lender will allow. Being in debt for your home will hamper your ability to save for future major financial obligations and wishes like vacations, family, retirement, medical expenses, and the occasional toy.
The old rules no longer apply, many households now spend between 21 – 54% of their gross income on housing. When a financial institution reviews a mortgage application, it usually follows two basic guidelines in determining how large a mortgage to grant:
•Principal, interest, taxes and insurance (PITI) should not exceed 25 to 28% of gross income, and
•PITI plus other long term debt should not exceed 33 to 36% of gross income
I doubt anyone will be willing to give you their personal information. Here’s a link to a site that will help you find answers to your questions. They have a mortgage calculator; just enter your income and it will help you figure out a mortgage amount.
http://americanmortgagemarketing.com/8748
There is a good possibility that I will be quitting my job soon so I need to keep a lot of cash and as a result may pull back on my mortgage payment plan. I like to have 6 months worth of payments in cash during normal times and keep that in an account specifically for the property.
Some people are paying even 50% of their income. But about 25% is a wiser choice because it gives you more comfort. And you won’t feel like you have a knife on your throat.
Dennis´s last [type] ..IronKey
It depends on your other expenses. I would talk to a really trusted realtor and a trusted banker about this.
It is advised for home buyers to put no more than 28 percent of their gross monthly income into a mortgage payment.
It depends on loan amount or duration of loan.
looking for a personal loan to an Autralian resident. Looking to consolidate debts, and am prepared to make weekly, repayments. Any advice or offers appreciated. Not looking for small loans…
Cheers
Well, in my case, 30% of my income goes to my mortgage. But i know people who’s percentage goes up to 50%.
Stephan´s last [type] ..Asus NX90 Review – only for the office of an executive!
I’ve always heard it’s 25% of your income. Just to be safe. Certainly, there are people who go higher than that.
On the day we both pronounced the words “I do”You yell at me for hours about what bugs youWell that’s a waste of time ‘cos I can do that too………
I think that it mainly depends on your other expenses
The 30% should include mortgage, taxes, fees, insurance, and maintenance of the property. Utilities do not count as part of the 30%.
The rule of thumb is 30% of your take home, or 40% of your gross. Remember that the interest and proprty taxes is tax deductible.
Andrew@Forum Design´s last [type] ..DesiHot Point
It is advised for home buyers to put no more than 28 percent of their gross monthly income into a mortgage payment.I think that it mainly depends on your other expense me.
You have to remember that it is a very targeted audience who is already consuming some form of what you are offering.
It depends on your other expenses. I would talk to a really trusted realtor and a trusted banker about this. I have to remember that it is a very targeted audience who is already consuming some form of what you are offering.have to remember that it is a very targeted audience who is already consuming some form of what you are offering. I have to remember that it is a very targeted audience who is already consuming some form of what you are offering.
Business Debt Solutions´s last [type] ..YOUR DESIGN Sky Orb Chinese Lanterns x 200 – £59999
As a matter of fact 28% of the monthly income is the limit for a morgage payment.The best way is to consult a trusted realtor.
I’d say no more than 25% of your take-home income. If your mortgage payments exceed that then it could definitely be tough going every so often, especially when unforeseen expenses like medical bills, a new addition to the family, repairs on the home, or divorce arise. Earmarking 25% of your income gives you a buffer, and not to mention, peace of mind.
I have always heard that your payment should not exceed 25 percent of your annual income.
I would say no more then 25% of your take home pay.You must allow yourself to save money for retirement and also having a emergency savings account is a must have.Remember to always feed the pig (save as much as you can) you will thank yourself in the future
25% is a general rule. It all depends on the type of loan, the amount you put down, etc. Some loans do not care about your income (stated income loans.) Other loans, like the reverse mortgage, actually pays you money to pay off an existing mortgage. In that case all the proceeds are yours. No more mortgage payment at all with a reverse mortgage!
Reverse Mortgage Chicago´s last [type] ..Chicago Reverse Mortgage Q and A
I’d say no additional then 25% of one’s consider residence shell out.It’s essential to allow for your self to lower your expenses for retirement and in addition owning a emergency savings account is actually a must have.Keep in mind to generally feed the pig (help save as much as you can) you can thank yourself inside the future
I have always heard that your payment should not exceed 25 percent of your annual income.!!
You have to remember that it is a very targeted audience who is already consuming some form of what you are offering.