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Posted: 1/16/2015 1:22:46 PM EST
[Last Edit: 1/16/2015 1:29:54 PM EST by JohnTlag]
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?

ETA: That includes taxes and insurance.
Link Posted: 1/16/2015 1:23:39 PM EST
[Last Edit: 1/16/2015 1:24:42 PM EST by Wandering_Moses]
Originally Posted By JohnTlag:
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?
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20% and I consider that to be too much.
Link Posted: 1/16/2015 1:23:57 PM EST
About 16%.
Link Posted: 1/16/2015 1:25:55 PM EST
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Originally Posted By Wandering_Moses:

20% and I consider that to be too much.
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Originally Posted By Wandering_Moses:
Originally Posted By JohnTlag:
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?

20% and I consider that to be too much.



I should clarify that the 1/3rd includes taxes and insurance.
Link Posted: 1/16/2015 1:25:56 PM EST
20%. That includes property tax, insurance and pmi. Without the extras, it's about 15%

30% is not horrible. But big home repair bills will suck.
Link Posted: 1/16/2015 1:27:14 PM EST
Mine is about 27% and its working for me so far.
Link Posted: 1/16/2015 1:27:28 PM EST
About a third of available post tax income , but that's only because child support is in play right now.
When I stop paying child support in a year the percentage will drop significantly
Link Posted: 1/16/2015 1:28:19 PM EST
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Originally Posted By JohnTlag:



I should clarify that the 1/3rd includes taxes and insurance.
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Originally Posted By JohnTlag:
Originally Posted By Wandering_Moses:
Originally Posted By JohnTlag:
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?

20% and I consider that to be too much.



I should clarify that the 1/3rd includes taxes and insurance.


Then yes, I think that's just fine.

I'm sure there will be plenty of assholes that chime in to lecture you about finances. Cause everyone here makes 500,000 a year and puts 90% towards savings and gold.
Link Posted: 1/16/2015 1:28:40 PM EST
I'm not worried at all, I have great disability insurance (costs me $500/month) and no kids. My wife doesn't work but is starting next week so that will add income. I am more concerned about having as much money as I do now to buy "fun" stuff.
Link Posted: 1/16/2015 1:28:53 PM EST
31% It's a little too high for my liking.
Link Posted: 1/16/2015 1:29:14 PM EST
About 23% but that is on a 15 year mortgage.
Link Posted: 1/16/2015 1:29:37 PM EST
1300 a year.

Posted Via AR15.Com Mobile
Link Posted: 1/16/2015 1:30:13 PM EST
Less than a 1/4 of my pay. But my wife makes more than I do. I picked well.
Link Posted: 1/16/2015 1:30:24 PM EST
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Originally Posted By whiskerz:
1300 a year.

Posted Via AR15.Com Mobile
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LOL try more than double that a month...
Link Posted: 1/16/2015 1:30:38 PM EST
$0, house is paid for.

That will change in a few years when we decide to upgrade. Current house was a bargain fixer upper that will never be real nice. On the other hand it's livable and paid for. Hopefully it will allow us to save and make the next house more affordable.
Link Posted: 1/16/2015 1:30:48 PM EST
Link Posted: 1/16/2015 1:31:52 PM EST
[Last Edit: 1/16/2015 1:32:20 PM EST by JohnTlag]
Glad nobody has told me I'm screwed yet. Looking forward to the day when my student loans are not more than my mortgage payment...
Link Posted: 1/16/2015 1:32:38 PM EST
House is paid off now but when I had a mortgage it was about 7%.

We don't live in a shack but we bought a hell of a lot less of a house than we could qualify for. We wanted to own the house and not have it own us.

I couldn't be happier with my choice. Only wish was that I had more land.

Lots of people go up to 50% but I think they are nuts. One hiccup in life and they are fucked. Your 30% is more than I would sign up for but I don't think it automatically puts you in the danger zone.

I would say I was extreme in my choice but around 20% would be a good recommendation.
Link Posted: 1/16/2015 1:32:39 PM EST
I'm retired now but when I was working my house PITA (Principal,Interest,Taxes, and Insurance) was 17% of my after tax income.
Link Posted: 1/16/2015 1:32:48 PM EST
Mine was about 30% of my income, but did not include my wife and was a 15 year note. I don't own a house anymore tho.
Link Posted: 1/16/2015 1:34:15 PM EST
Percentage is meaningless. My take home is about 12k/month, mortgage is 2.3k, ~20% may sound high but I'm by no means overstretched.
Link Posted: 1/16/2015 1:34:24 PM EST
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Originally Posted By JohnTlag:
Glad nobody has told me I'm screwed yet. Looking forward to the day when my student loans are not more than my mortgage payment...
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You aren't that screwed. Here in CA if you even want to get into a starter home the average person is probably at like 50%
Link Posted: 1/16/2015 1:36:42 PM EST
[Last Edit: 1/16/2015 1:37:04 PM EST by Justa_TXguy]
About 35%.

Only got a couple more years left.
Link Posted: 1/16/2015 1:38:50 PM EST
[Last Edit: 1/16/2015 1:45:32 PM EST by carpesignum]
50%, but I bought with the intention of having roommates. still wish I bought a cheap condo instead, bought June 2013 and it would have been paid for by now, roommates or not...

edit: 50% is tight, I dont make a lot of money either. but it by no means makes me feel uncomfortable. I paid the bills for a year by myself (got pissed and kicked my roommate out) and got ahead on my mortgage 4 months (my way of building a safety net), and have ~ 8 months income in savings.

but im single with no kids. I can still eat out all I want, buy guns, buy tools, go on vacation, etc...
Link Posted: 1/16/2015 1:39:12 PM EST
PITI is about 12%
Link Posted: 1/16/2015 1:41:31 PM EST
About 19%. Includes mortgage, taxes, insurance.
Link Posted: 1/16/2015 1:41:45 PM EST
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Originally Posted By 35mm_Shooter:
Percentage is meaningless. My take home is about 12k/month, mortgage is 2.3k, ~20% may sound high but I'm by no means overstretched.
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I agree that if you have a large income, then you can afford to increase that % because things like food, gas etc. will be the same as someone who makes less, but it is still an important consideration as a ball park figure when considering how much house you can afford. In fact that is how the bank calculates how much they will lend to you.
Link Posted: 1/16/2015 1:42:54 PM EST
[Last Edit: 1/16/2015 1:50:03 PM EST by James23]
Edited.

Wait ..... I take it back. I didn't include property taxes.

Stand by ....


P&I and property taxes - 30%

A little over the 25% that, according to financial advice that was given to me many moons ago, is generally regarded as a practical percentage.
Link Posted: 1/16/2015 1:44:32 PM EST
0.14181182%
Link Posted: 1/16/2015 1:45:43 PM EST
About a quarter, but then there's $400 in HoA fees and utilities.
Link Posted: 1/16/2015 1:45:50 PM EST
Just the mortgage, 20%. Add in taxes and escrow it jumps to about 45%.

Yes, my taxes are more than my mortgage right now. Fuck Illinois. I go in for a hearing to contest them at the end of the month. My angus will be peppered for that.

That isn't counting the soon to be wifes income, which helps out tremendously.
Link Posted: 1/16/2015 1:47:00 PM EST
about 25% if you include property tax and homeowners insurance.
Link Posted: 1/16/2015 1:47:14 PM EST
~20% when we bought it.

~28% now.

Get the point?
Link Posted: 1/16/2015 1:48:18 PM EST
[Last Edit: 1/16/2015 1:49:30 PM EST by Admiral_Crunch]
About 22% for loan, taxes, and insurance. We're okay with that. We were paying almost 40% at one point, and that was very tight. We managed, but it wasn't fun. We were close to selling the house and downsizing. Luckily things got better.

Once my wife graduates nursing school and starts working, it should drop to 12-15%. Then I'll be very happy.
Link Posted: 1/16/2015 1:49:56 PM EST
[Last Edit: 1/16/2015 2:09:33 PM EST by callgood]
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Originally Posted By JohnTlag:
I'm not worried at all, I have great disability insurance (costs me $500/month) and no kids. My wife doesn't work but is starting next week so that will add income. I am more concerned about having as much money as I do now to buy "fun" stuff.
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if you have half a brain you'll start a contingency fund to replace the water heater (hot water heater for GD), re-roof the house at some point, etc., etc., etc. My daughter just bought her first home and I'm starting to feel like Norm on This Old House.

To answer your question, zero.
Link Posted: 1/16/2015 1:50:57 PM EST
Link Posted: 1/16/2015 1:51:15 PM EST
Mine - including taxes/insurance - is just under 1/3rd of my take home pay after taxes, insurances, retirement, etc. At times I feel it is too high, but we will have two incomes in a few more years so I think we're ok.
Link Posted: 1/16/2015 1:51:41 PM EST
You can hope that percentage will look better as your income goes up, and the principal+interest payment stays the same.

Unfortunately, taxes and insurance will go up too...

The good news, it's much better in the long run (financially and lifestyle-wise) than renting a similar house.

Be sure to increase your "emergency fund" to cover X months of mortgage payments, where X is inversely proportional to your job stability
Link Posted: 1/16/2015 1:51:56 PM EST
~25%
Link Posted: 1/16/2015 1:52:33 PM EST
1/3 of just my salary ( not including wifes). That also includes paying extra principle every month to pay it off quicker.
Link Posted: 1/16/2015 1:52:41 PM EST
Almost 10% exactly last year. Weird since my income varies.
Link Posted: 1/16/2015 1:53:00 PM EST
Mortgage/Taxes/Insurance is 25% of Net Pay.
Link Posted: 1/16/2015 1:53:37 PM EST
17.5% goes to my mortgage, taxes, insurance.
Link Posted: 1/16/2015 1:53:48 PM EST
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Originally Posted By NIUGoalie:
Just the mortgage, 20%. Add in taxes and escrow it jumps to about 45%.

Yes, my taxes are more than my mortgage right now. Fuck Illinois. I go in for a hearing to contest them at the end of the month. My angus will be peppered for that.

That isn't counting the soon to be wifes income, which helps out tremendously.
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Good lawd!! Move to another state aready.

I hope the hearing goes well. TAXES are almost the same as your mortgage payment
Link Posted: 1/16/2015 1:54:28 PM EST
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Originally Posted By JohnTlag:



I should clarify that the 1/3rd includes taxes and insurance.
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Originally Posted By JohnTlag:
Originally Posted By Wandering_Moses:
Originally Posted By JohnTlag:
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?

20% and I consider that to be too much.



I should clarify that the 1/3rd includes taxes and insurance.


Including escrow makes it not AS bad.
Link Posted: 1/16/2015 1:55:15 PM EST
Originally Posted By JohnTlag:
Just closed on my first house, Mortgage payment will be 1/3rd of monthly after tax income. Should I pepper my angus, or is that normal?

ETA: That includes taxes and insurance.
View Quote

Back in the day, 20-25% of your pre-tax income was the bar for measuring what you could/could not afford.

Mine is about 22% of my post-tax income.
Link Posted: 1/16/2015 1:56:03 PM EST
All in payment each month...about 29% (fuck...)

For mortgage 1.

Mortgage 2 (which is rented...) brings it up obviously. Right over 50%
Link Posted: 1/16/2015 1:56:49 PM EST
Im at 28% for everything .
Link Posted: 1/16/2015 1:56:50 PM EST

20%

20 year note.


Link Posted: 1/16/2015 1:59:32 PM EST
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Originally Posted By RDTCU:
~25%
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Link Posted: 1/16/2015 2:00:02 PM EST
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Originally Posted By Just1ce:



Good lawd!! Move to another state aready.

I hope the hearing goes well. TAXES are almost the same as your mortgage payment
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Originally Posted By Just1ce:
Originally Posted By NIUGoalie:
Just the mortgage, 20%. Add in taxes and escrow it jumps to about 45%.

Yes, my taxes are more than my mortgage right now. Fuck Illinois. I go in for a hearing to contest them at the end of the month. My angus will be peppered for that.

That isn't counting the soon to be wifes income, which helps out tremendously.



Good lawd!! Move to another state aready.

I hope the hearing goes well. TAXES are almost the same as your mortgage payment



Just looked at my bill from last month, $630 for taxes and insurance, $510 for P&I.

I have a solid job here as a UPS driver. 25 years until I'm 55 and retire.
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