What's Your Mortgage Compared To Your Income?

[The Valkyrie]

You pay for "classic", Iggy.

[Seraphina]

Thanks, guys!

We've done a ton of math and have come to about 40% (or maybe less, since we didn't include bonuses, which are plentiful) of our net income, that's after 401K, all medical bills (HSA), insurance. It includes home insurance and taxes. It seems kind of high, but our debt to income ratio is okay. We qualify for more, but FUCK that. If we go 50K less, we only save a few hundred dollars.

It's normal to be nervous about a large transaction like buying a home but I think you're gonna be ok.

-Teresa

[Whateverist]

I'm a kept man, one who turns over the pay checks and hopes for the best.  Our monthly mortgage takes about a fifth to a sixth of what we gross.  We refinanced a fifteen year mortgage back when we needed to do some major roof work.  I'm not sure how many years are left on that, not many.

The original mortgage was for about 50,000 back around 76.  The property is probably worth twenty times as much now but i'm not sure if the building adds anything to that or brings the value down.  It isn't for everyone but it has room inside for Lia's studio and space outside for lots of gardening.

[popeyespappy]

The mortgage plus property tax and insurance works out to 12% of net and 8.3% of gross.
Add HOA fees to that it's 16% of net and 11.1% of gross.

I'm comfortable with that, but I just dropped $12,000 on the AC/heat. That hurt. Came home yesterday and didn't have shit for hot water pressure. Flushing the hot water heater took care of that for now, but it's 13 years old and should really be replaced. I'm looking at another $1200 there unless I DIY again. Something I'd prefer not to do this time. The point being maintenance costs can add up quickly so plan to keep a good reserve just for that.

40% would scare the shit out of me, but the cost of living is high there compared to here.

[SteelCurtain]

Mortgage is a little less than 15% of income.

[Shell B]

The mortgage plus property tax and insurance works out to 12% of net and 8.3% of gross.
Add HOA fees to that it's 16% of net and 11.1% of gross.

I'm comfortable with that, but I just dropped $12,000 on the AC/heat. That hurt. Came home yesterday and didn't have shit for hot water pressure. Flushing the hot water heater took care of that for now, but it's 13 years old and should really be replaced. I'm looking at another $1200 there unless I DIY again. Something I'd prefer not to do this time. The point being maintenance costs can add up quickly so plan to keep a good reserve just for that.

40% would scare the shit out of me, but the cost of living is high there compared to here.

Right? It’s fucking with me, but here the median house is in the 300s. We are well above the median income. Everyone who owns a house here is buried.

[Shell B]

Mortgage is a little less than 15% of income.

God we’re fucked. Lol

[Anomalocaris]

The cost of mortgage, HOA, property tax, and various irreducible local fees on my first house in Northern California add up to about 23% of my gross income at the time of purchase.

Those on my second house in Southern California added up to 25% of my gross income at the time of purchase.

[ignoramus]

Just pay a shitload off before interest rates start to climb...

On a side note, the good wife votes for whoever I tell her to vote for...
She gets sucked in by my logic! lol

Anyway, the other day I told her we're voting Labour at the next federal elections...
Labour's very good at fucking the country up and interest rates will start rising ...
We need that when we sell the house in a couple of years to move up north.
We'll need good interest from the banks to live off ... makes sense..

[Anomalocaris]

The mortgage plus property tax and insurance works out to 12% of net and 8.3% of gross.
Add HOA fees to that it's 16% of net and 11.1% of gross.

I'm comfortable with that, but I just dropped $12,000 on the AC/heat. That hurt. Came home yesterday and didn't have shit for hot water pressure. Flushing the hot water heater took care of that for now, but it's 13 years old and should really be replaced. I'm looking at another $1200 there unless I DIY again. Something I'd prefer not to do this time. The point being maintenance costs can add up quickly so plan to keep a good reserve just for that.

40% would scare the shit out of me, but the cost of living is high there compared to here.

Right? It’s fucking with me, but here the median house is in the 300s. We are well above the median income. Everyone who owns a house here is buried.

Have you considered finding a house with an integral rental unit? The rent can offset at least 25-30% of your monthly mortgage.

I am building a house in an rather pricy area of Northern California. I included an integral 800sq foot 1 bedroom apartment. My mortgage would be 52% of my take home pay. But if I add rental income to my take home pay then the mortgage comes down to 40% of net income.