What percentage of your monthly income goes into your mortgage?

[bleedingheart]

Given the post in LBN regarding the amount of money it takes for people in CA to buy a home, I am curious to see what percentage of monthly income people put into their homes...

Personally I am dismayed that many people over-mortgage themselves. I realize that a home can be an investment but it shouldn't be a financial prison...

[bleedingheart]

1. 8% without taking into consideration taxes....

[candy]

2. You are either very smart,very rich,or very lucky! Good for you.

[bleedingheart]

7. not really

we bought our house over 10 years ago when we made a lot less and never upgraded into a larger home...while most of our friends did.

I put extra money towards the mortgage and then refinanced with a low interest rate for a shorter term...

smart maybe...but not rich or lucky...

I remember when we bought the house that we had only about $1,000 in the bank left after paying down the mortgage and we were very anxious about our new responsibility...

[candy]

19. Yes,you are smart--You fought the urge for a McMansion and used

your head. Congratulations!

[indianablue]

3. 22 %

I am single with a blue collar job :)

29 % if you include taxes and escrows.


Plus I put 10 % down when I bought it 2 years ago. In another year or with the extra money I have payed on the loan I should be able to drop PMI.

[Nimrod]

4. I rent.

Just did the math - 49.8% is what I come up with.

[alcuno]

5. 25% - And nearly 50% of that is for taxes and escrow.

Yikes!

[mr_hat]

6. Roughly one quarter, pre-tax. But we added a second to finance >

for an addition that greatly improved our home's worth. Still, I hope I'm lucky enough to die there as an old man.

[MissB]

8. 14%, roughly. (nt)

[CornField]

9. Roughly 15%

[benny05]

10. My income or joint-income post-tax?

Joint-income (married) about 19%, maybe a little more, but under the 25% rule...

[bleedingheart]

12. either...mine would be 13% if I took into consideration only my income

but I took my husband's into consideration as well...

[benny05]

20. But that includes taxes

we have to pay..but tax-deductible

[youthere]

11. 7%

Not including taxes and insurance.

[idiosyncratic]

13. I also rent. More than 50% of my income is used for that payment

:cry:

[gottaB]

14. rent. < 9% of Gross

[flamingyouth]

15. About 18%.

[Momgonepostal]

16. About 20% of gross

That's PITI and HOA dues.

We also have a very small home. I'd love something bigger, but we're both working temp jobs so I don't think we could get another mortgage.

[geniph]

17. Close to 25%, BUT

that's a 15-year mortgage at 4.75% fixed, and that includes taxes and insurance.

It was closer to 15% when I had it on a 30-year mortgage, but hoowee, does the equity build fast on a 15-year.

oh, and that's only my income. My husband's varies, so I don't count his - besides, the mortgage is solely in my name, and I make all the payments.

[trackfan]

18. 33% of gross 38% of net n/t

[AlCzervik]

21. 16% we also make $100 principle only pmt a month

[karlrschneider]

22. Zero, actually. As to property taxes, about 1.2 percent.

We bought the place & 14 lots for cash & remodeled it ourselves the last 9 years so it's all paid for. It's no palace but it's not too shabby either. :-)

[ultraist]

45. Investors don't count! LOL! Good move

Do you still do real estate deals?

[EVDebs]

23. In coastal counties (I'm in CA) homes ave $400,000 and both spouses work

This is part of the thesis of Two Income Trap by Elizabeth Warren and daughter Amy Tyagi (sp?).

Education costs, mortgage, and healthcare costs are the big three killing the middle class.

Crowded coastal counties (think blue states) are seeing housing prices skyrocket, which is why the long term interest rates need to stay stable despite Greenspan's raising of interest rates.

When long term (mortgage) rates begin to rise, then the housing bubble will burst and hold onto your chair after that !

[EVDebs]

39. Occidental CA Census Designated Place shows variations

I live nearby this CDP with census info published online at
http://www.bayareacensus.ca.gov/cdp/Occidental.pdf
The housing stuff is near the end but income and household info is up front.

Median Household Income is $54,000 in 2000 Census

Page 4 shows a housing with mortgage breakdown

under 15% of income-- 33%
15-20% -- 12%
21-25% -- 6.5%
26-30% -- 15.6%
31-35% -- 7%
over 35% of income-- 26%

so, there is a wide variation, depending upon length of homeownership and Proposition 13's effects. 27% of homes were listed as 'not mortgaged', so either fully owned or rentals.

If you want a real laugh, go to the above census weblink and check out San Francisco...I don't know how ANYBODY there can afford their mortgage on a new purchase.

[ultraist]

47. Interesting stats

Did I read correctly that the area is .6% black?

21% of the homes are valued at: $500,000-1M

[ClassicDem]

24. 5%

I got my morgage down from $1000 to $500 a month I just can't wait to pay it off.

[KayLaw]

25. It depends

We have a lot of money taken from my husband's checks for insurance, etc. Also, we pay taxes and insurance when we make the mortgage payments, but I'd estimate 20%. We got a bargain on this house about eight years ago and resist the mortgage companies who beg us--on an almost daily basis--to "cash out equity."

[Moxygirl]

26. 16%

[newyawker99]

49. Hi Moxygirl!!

Welcome to DU!! :toast:

[Blue_In_AK]

27. Just about 24%

It varies because I'm self-employed and make different amounts every month, but this is an average. (Includes taxes, insurance)

[Just Me]

28. My student loan IS MY MORTGAGE. I'll never own a home,...

,...unless I "marry" it or am "discovered" or hit the lottery!!!

I am an American!!! I am an American who, more likely than not, will never enjoy Bush's "ownership society".

[Xithras]

29. I'm a Californian, and it's a about 40% of my income

Doable, but definitely not comfortable.

[Strelnikov_]

30. P+I 16% Of Net

All of the yearly Prop Tax/Ins cost is offset by the mortage interest deduction.

If Our Leader elimnates this deduction, or the State and Local Tax deduction, P+I + Prop Tax/Ins will go to 20% of Net.

[truebrit71]

31. Zero % . I used to have a mortgage and then I got down-sized...

..so my mortgage turned into a rent payment....

[MountainLaurel]

32. About 37 percent

But that also includes my condo fees.

Today, I wouldn't even be able to buy the condo I own: the cost has doubled in two years' time.

[DU GrovelBot]

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[Samurai_Writer]

34. Mortgage?!? Who can afford to buy a house nowadays?

I'm 44 and it looks like I might NEVER be able to afford a house. Especially now that real estate in my area has gone through the roof due to the hurricanes.

On Edit: My rent costs me 12.5% of gross income, 17% of net. I live in one of the least-expensive apartments in this area. Everything else would easily cost me over 25% of my net.

[UdoKier]

35. Half of us don't have mortgages.

55% of our monthly income goes to rent alone.

San Francisco...

[bleedingheart]

36. I understand but I am just asking about mortgages...Rent is another issue

actually I think there should be a thread about it alone...especially since so many people are paying through the nose in rent and can never afford to pack enough money away to buy a home...

[Fescue4u]

37. about 9%

[bigwillq]

38. NONE! I split my time b/w living at my folks place

where I pay nothing and at my b/f's condo, which I owe, but he pays the mortgage!:)

[ornotna]

40. about 20% of net. n/t

[GOPisEvil]

41. About 1/3 of take-home.

25% of gross.

I was approved for a house $40,000 more than the house I bought. I can't imagine making that payment.

[pdxmom]

42. About 14%, but

after taxes and all our deductions for 401K's, IRA's etc., it comes out to about 25% of what our actual take home money is.

[WillowTree]

43. 13-14%

That includes my property taxes and the fact that I overpay my mortgage slightly every month.

[ultraist]

44. 10%

Not including property taxes & homeowners insurance.

[Stinky The Clown]

46. 13% based on gross joint incomes

I've been in the house for 25 years and have refinanced a number of times (either to take out some equity for improvements or to lower the interest rate).

[primavera]

48. About 23% of net

Plus a little extra for condo fees.