What % of your monthly gross income is your mortgage payment?

[GoodSteward]

We have had some rather silly questions lately about income % comparisons. One that I think can be a little more useful for comparison is the question what percentage of your monthly income is your mortgage payment?

My payment is 12% of my monthly gross.

I couldn't stomach 25% like Dave Ramsey says you can go up to. Twice the payment?! It's no wonder people struggle so easily. IMO, I think when you are still working your way through life, you should keep your house payment to below 20%, at least for the average person. If you can't afford to live where you are, I advise moving. There is no sense in living where you can have no cents.

[disneysteve]

Ours is somewhere around 13% (I don't have my exact income figure handy).

With my new part time job, my income this year will be a bit higher so the percentage will be a little lower but still in that same range.

[MonkeyMama]

Ours is 12%

[disneysteve]

My payment is 12%

Ours is somewhere around 13%

Ours is 12%

I think you're going to see a lot of responses in this range among this group.

I've said many times that overspending on homes and cars is what sinks most people's finances.

[bjl584]

I'm right around 13%

[phantom]

Are you counting taxes and insurance as part of the mortgage payment?

We were at 23% with and 17% without when we bought our house, and we're at 14% with and 10% without now. Salaries and taxes have naturally gone up over time, and the mortgage itself went up due to a refinance from a 30-year to a 15.

We didn't really think much about the percentage when buying out house. We just made up a hypothetical budget and made sure we could afford the house, plus a little bit of wiggle room. We considered going with a 15 year mortgage right off the bat, but we decided to go with the 30 and committed to paying extra. I'm glad we left ourselves as much wiggle room as we did, because my husband lost his job about a year after we got the mortgage. At that point, our mortgage was probably more than 25% of our income, and it was totally manageable. But, had we started at such a high percentage, or had to stay there for more than a year or so, we would have had trouble.

[disneysteve]

Are you counting taxes and insurance as part of the mortgage payment?

My answer includes PITI.

[GoodSteward]

I think you're going to see a lot of responses in this range among this group.

From my observation, people who look for a financial forum are usually people who are already responsible with money. How many in here looked for a financial forum BEFORE they wanted to clean up their finances?

I remember a common theme I was told when I was working with an insurance/financial group on the side.

"If you don't want to be broke, stop taking advice from your broke friends. If you want to win with money, surround yourself with others who are winning."

[Jluke]

PI = 0% (used to be 12%)

TI = 8%

[GoodSteward]

Are you counting taxes and insurance as part of the mortgage payment?

That's a good question. I assumed with because I'm escrowed. I suppose if someone isn't they can show a better %. I say you should include it to reflect the total liability of the purchase, which is the idea of the question.

[NJDebbie]

0% House is paid for!

[DaveInPgh]

Our 15yr fixed was 13% (including tax and insurance) of our monthly gross income. Paid it off in February 2014.

Our T&I is currently about 3.5% of our gross.

[GoodSteward]

Before the refi from 30yr to 15yr, we were at 10%.

[phantom]

That's a good question. I assumed with because I'm escrowed. I suppose if someone isn't they can show a better %. I say you should include it to reflect the total liability of the purchase, which is the idea of the question.

I agree that with makes more sense for the spirit of the question. But, since I no longer have an escrow, the number without came to mind first. So, I figured I should clarify.

[GoodSteward]

Oh man, I just found out I've had this all wrong. I just went to CNN money, and used their "How much can I afford" calculator. http://money.cnn.com/calculator/real...e/home-afford/

Apparently, I can buy 4x the house I have now! What kind of magic math is this? Must be calcunomitry, as I missed that class in school. Man, I'm living way below the standard. House hunting here I come!!