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What percentage of your gross pay goes to your mortgage?

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What percentage of your gross pay goes to your mortgage?

Old 06-07-07, 10:34 PM
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What percentage of your gross pay goes to your mortgage?

Ok, another mortgage/house buying question from me. (Sorry).

Anyway, I've read that your house payment, with taxes and insurance, should be between 28-36 percent. I was talking to a loan officer and she told me 45% would be conservative. I think she's crazy to call it conservative.

I'm looking to buy my first house and I guess I'm paranoid not knowing all the costs involving in owning a home since I've never lived alone or owned a home.

So, what percentage of your gross pay goes to your mortgage?
Old 06-07-07, 10:51 PM
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20%
Old 06-07-07, 11:15 PM
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25%
Old 06-07-07, 11:26 PM
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20% of mine alone, 7.6% of our combined income.
Old 06-07-07, 11:27 PM
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Um, just under 14%, and that includes insurance and taxes. I guess I'm living below my means, and if I ever get married or whatever, it'll be big pimpin'. ...although I pay an extra twelfth of my mortgage every month to get in the equivalent of an additional payment once a year, so in practice it's a little more than that.
Old 06-07-07, 11:38 PM
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Looks like about 25-27%.

I'm slacking. It would be much more if I were doing things right.
Old 06-08-07, 12:05 AM
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About 25% of our combined income will be going towards our house payment (PITI), and that's definitely more than I'd like. It doesn't leave a whole lot of breathing room with a student loan payment and a car payment to make. 45% would be way too much. I'm somewhat surprised, with all the subprime mortgage places going out of business lately, that lenders aren't being more conservative with these numbers.
Old 06-08-07, 12:19 AM
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Ours is about 7-8% of net. 25% of net is the amount I always hear you should not exceed.

The loan officer that said it is 45% is a dumbass. Most people who have that much house are in for a world of hurt if their income dips. 45% of gross is an even much larger % of net.
Old 06-08-07, 12:31 AM
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Currently it's 24.5% for me... and ours is a single income. My wife's a stay at home mom.

Our house is currently on the market and the homes that we are looking at would take us up into the area of 35%. Personally, I'd never go higher than that.
Old 06-08-07, 12:32 AM
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25% of gross
Old 06-08-07, 02:07 AM
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Our house payment is 22% of our combined gross income, including taxes and insurance.
Old 06-08-07, 02:12 AM
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I'm engaged and living with my fiance now but when I had my own home and one income it was 25%.
Old 06-08-07, 05:02 AM
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Originally Posted by Lee Harvey Oswald
Ok, another mortgage/house buying question from me. (Sorry).

Anyway, I've read that your house payment, with taxes and insurance, should be between 28-36 percent. I was talking to a loan officer and she told me 45% would be conservative. I think she's crazy to call it conservative.

I'm looking to buy my first house and I guess I'm paranoid not knowing all the costs involving in owning a home since I've never lived alone or owned a home.

So, what percentage of your gross pay goes to your mortgage?
She was probably talking about TOTAL DTI.......your total DTI shouldn't (usually) exceed 50%....
Old 06-08-07, 05:07 AM
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25% of gross. I didn't know that until now (I had used net before).
Old 06-08-07, 07:13 AM
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33% of gross for everything (PITI)which is a bit on the high side but I get by alright. In 08 along with my usual raises, I'm purchasing fewer vacation days (since i get 3 extras for free next year) so that'll be more money each week plus my car is payed of in July 08 so that'll be another ~300 i won't be dishing out each month. Between that and that hopefully I won't still be single in the not too distant future and I can eventually start working that dual income magic.
Some people have said "hey get a roommate". Well, I've got a friend staying with me temporarily and it's a good thing it's temporary, I definitely could not deal with a roommate after years of living alone even though my house is ~2200 sq ft.

Last edited by Cardiff Giant11; 06-10-07 at 03:00 PM.
Old 06-08-07, 07:21 AM
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I'm at 10%.
Old 06-08-07, 07:25 AM
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PITI is 24%
Old 06-08-07, 07:37 AM
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100% of my income, but then student stipends are nothing to write home about!

That is why I have a wife to pay for everything else!
Old 06-08-07, 07:57 AM
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So, what percentage of your gross pay goes to your mortgage?
23%, but I'm answering this:

...your house payment, with taxes and insurance, should be between 28-36 percent.
You seem to have asked two different questions.
Old 06-08-07, 08:26 AM
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I'm not sure about gross income, but we're going to be paying about 33% of our net income (for PITI). I don't think that's too bad for our first place in the DC metro area.
Old 06-08-07, 08:30 AM
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Under 10% combined gross
Old 06-08-07, 08:31 AM
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About 15%, 19% if I include tax escrow. That doesn't seem too bad... until you remember income taxes.

Married, single income, two kids, two cars in Chicago is tricky some times.
Old 06-08-07, 08:44 AM
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26% of gross, including taxes and insurance.
Old 06-08-07, 09:40 AM
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I guess I'm bad at math when I'm tired. I'm feeling better now and would like to change my answer to 12%. Still answering the Gross vs. Mortgage, Tax, and Insurance question.

Single, no kids.
Old 06-08-07, 09:47 AM
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A little over 33%.

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