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Mortgage companies are great for getting you to stretch your dollars to their benefit. I pay 11% of my gross and am very comfortable in my home. It was unbelievable what the banks and realtors tried to show me that was "well within my means". It's hard for me to concieve of going much above this and I'm not going to become a slave to a mortgage payment. Were seeing in the housing market where that attitude leads.
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"Those who can't remember the past are condemmed to repeat it".- George Santayana. -
We are at about 13% of gross and 26% of net and it seems about right.Comment
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Actually, this is a slightly scary figure, but investor guidelines still allow us to get conventional loans approved at a 55%-60% back end ratio (so if you made $1,000 a month, $550 to $600 PITI if debt free). FHA are slightly tigher 53% ($530) for the same example.Comment
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Our payment was around 17% of our monthly net the last time I calculated it. Our house is old and requires a lot of maintenance, and I like to save and travel, so I like to keep large fixed expenses like our mortgage down.
Income fluctuates a lot, so I always look at last year's figures for stuff like this. I won't know until the end of the year how much we made this year.Comment
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