(Closed) Mortgages and Net Salary

posted 8 years ago in Home
  • poll: Our mortgage is this much of our *net* income

    28-29%

    30-31%

    32-33%

    34-35%

    36-37%

    38-39%

    40-41%

    42-43%

    44-45%

  • Post # 32
    Member
    1660 posts
    Bumble bee
    • Wedding: October 2011

    View original reply
    @pinkshoes:  Agreed. I think we will be around 30% of net w/ our new house assuming we are maxing out our retirement contribution. It would be a lot lower percentage if we weren’t contributing so much to retirement, but we know we can always modify our contribution if need be.

    Post # 33
    Member
    868 posts
    Busy bee
    • Wedding: September 2011

    Ours is ABOUT 20% I think.  DH works on 100% commission so we always plan to make less than he actually does.  We bought a house that we could pay for on my salary alone (only the house and bills, not cars/food/lifestyles/etc) so that if he ever had multiple bad months in a row, we could at least pay our mortgage and bills.  A normal year for us, minus our 401k contributions and all the regular deductions (insurance, taxes, etc) works out to be between 18-22% of our net income.

    Post # 34
    Member
    585 posts
    Busy bee

    Your  mortgage, insurance and tax should stay around 25% of your net income. Anymore than that, and it’s easy for life to become a struggle.

    Ours is less than that right now because we’re renting, around 15%, but we’re saving up for a house.

    Post # 35
    Member
    752 posts
    Busy bee
    • Wedding: October 2011

    16% and we are in our forever home.  I dont want to ever feel like we can’t make ends meet if one of us goes unemployed for a while.

    Post # 36
    Member
    103 posts
    Blushing bee
    • Wedding: May 2011

    DH’s salary fluctuates a lot depending on overtime, but ours is about 9% of our combined base salaries.

    Wow – looking at that number you’d think we’d be rolling in the dough! However, we have quite a bit of CC and student loan debt 🙁

    Post # 37
    Member
    13094 posts
    Honey Beekeeper
    • Wedding: July 2010

    Our PITI (principle, interest, taxes, and insurance) is 27% of our take-home pay.

    We are comfortable with this although we are close to the max we are willing to go.  This percentage is only going to decrease with time though as we both get raises.

    Post # 39
    Member
    1210 posts
    Bumble bee

    I voted 50% for PITI. I live in a pricey area and I bought my place on my own. Plus my condo association fees and taxes are rather high. That said, its all relative, because I feel I make a decent salary and have more than enough spending money left over. However, once me and SO get married, the percentage will drop to around 17% because he makes a lot more than me. Can’t wait for that!

    Post # 40
    Member
    1327 posts
    Bumble bee

    Around 30% and it is no problem for us to pay it.

    Post # 41
    Member
    1811 posts
    Buzzing bee
    • Wedding: November 2012

    We are at 25% and we haven’t struggled at all

    Post # 42
    Member
    3696 posts
    Sugar bee
    • Wedding: May 2012

    Our mortgage payment is about 10% of our combined net now that we’ve paid off our 2nd mortgage.  Before that it was about 30% of HIS net salary, but he planned on paying off the 2nd mortgage quickly.  Now with two incomes and a lower payment we’re saving like crazy. 

    Post # 43
    Member
    9050 posts
    Buzzing Beekeeper
    • Wedding: June 2010

    We pay 44% of our net combined income to our mortgage each year.  We have a mortgage at 5.78% interest that wasn’t worth refinancing when interest rates dropped and you’d be hard pressed to find a savings account that makes the interest we save by overpaying.  So its a hard question to answer straight as I would imagine plenty of people are paying more than they’d actually have to.  ie, our minimu payments on our 220,000 mortgage over 25 years would be about $750/month or about 9% of our net income.

    Post # 44
    Member
    592 posts
    Busy bee
    • Wedding: October 2011

    We pay 13% of our combined net to our mortgage, taxes, insurance and pmi.

    I max out my 401K which brings my net down.  

    Once DH is done paying his student loans (in 7 short years – ha) we’ll be looking for a newer home.

    Post # 45
    Member
    2638 posts
    Sugar bee
    • Wedding: November 2006

    Well, our mortgage includes our homeowner’s insurance and INSANE property taxes . . . so we’re at 33% and it’s fine. However, we have a small second mortgage that we are paying off within the year, then it will be 27%, which is even better!

    Post # 46
    Member
    9129 posts
    Buzzing Beekeeper
    • Wedding: November 2013 - St. Augustine Beach, FL

    If you get a traditional mortgage it shouldn’t be more than 3x your gross salary and monthly payments with taxes and insurance should add up to 25-30% (or less) of your net salary.  This is the rule of thumb you look at when deciding whether it’s reasonable to rent or buy in your local market; rent and utilities should never be more than 30% of your monthly salary and if it is you need to reconsider buying.

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