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What % of your income?

What % of your income (after tax) goes to rent or mortgage? I thought I read somewhere it was supposed to be a certain % but I can't remember what it was and if it was monthly or yearly. We are looking at buying a house and our payment would be about $2500 a month and it would be about 3% of our monthly income and I didn't know if that sounded right or if we should look for something less.

Answer Question
 
Anonymous

Asked by Anonymous at 4:44 PM on Mar. 14, 2011 in Money & Work

Answers (17)
  • roughly 10%
    butterflyblue19

    Answer by butterflyblue19 at 4:47 PM on Mar. 14, 2011

  • Its ideally supposed to be no more then 25% of your net monthly income so you should be fine at 3%.
    gemgem

    Answer by gemgem at 4:47 PM on Mar. 14, 2011

  • i think its 30%
    jenn4443

    Answer by jenn4443 at 4:47 PM on Mar. 14, 2011

  • I think you may be talking about what % of your monthly income is the maximum amount for the mortgage payment? The "old' guidelines were no more than about 25% of your gross monthly income should go towards a house payment and no more than about 30% should go toward all debt, combined. Then that got loosened up and we had the housing bubble. I'm not sure what the guidelines are now. Personally, I would stick with the "old" rules. Or even lower.
    Mom2Just1Kiddo

    Answer by Mom2Just1Kiddo at 4:49 PM on Mar. 14, 2011

  • Yes mom2just1kiddo that is what I was talking about. Thanks for the help! I couldn't remember if they said the guidelines were monthly or yearly.
    Anonymous

    Comment by Anonymous (original poster) at 4:50 PM on Mar. 14, 2011

  • Huh? $2500 is 3% of your income? Are you making 10's of thousands a month??
    butterflyblue19

    Answer by butterflyblue19 at 4:51 PM on Mar. 14, 2011

  • It really needs to be no more than 25% and to be on the safe side lower than that in case one of you loses your job or gets injured and can't work for a while.
    slw123

    Answer by slw123 at 4:53 PM on Mar. 14, 2011

  • People do earn that much.
    Anonymous

    Answer by Anonymous at 4:57 PM on Mar. 14, 2011

  • $2,500 is 3% of $83,333. Maybe you meant 30%? $2,500 is 30% of $8,333. 30% is the maximum amount you should pay for mortgage or rent. I personally I prefer to keep it closer to 15%, but I know that is not possible everywhere. GL!
    Anonymous

    Answer by Anonymous at 4:57 PM on Mar. 14, 2011

  • Roughly 20%.
    LadyMommaDukes

    Answer by LadyMommaDukes at 4:58 PM on Mar. 14, 2011

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