Our house payment includes taxes and insurance but we pay right at 11% of our net earnings to our house payment
Same with insurance/taxes. Ours is a little less than 25%.
posted by Ironman92Our house payment includes taxes and insurance but we pay right at 11% of our net earnings to our house payment
If we are going off actual bring home (after 401k, medical ins, IRA contributions, etc) then 13%.
If we are going off of net (gross-taxes) then 10%.
Somewhere around 10%-12%, i believe.
Around 11%.
4.8% lol. About 8% if you include gas, electric and water.
posted by Fab4Runner4.8% lol. About 8% if you include gas, electric and water.
No definitely not including utilities.
posted by jmogIf we are going off actual bring home (after 401k, medical ins, IRA contributions, etc) then 13%.
If we are going off of net (gross-taxes) then 10%.
Yeah, sorry just assumed a bit on that stuff being taken out of check
15%
posted by Fab4Runner4.8% lol. About 8% if you include gas, electric and water.
That’s really low, and seriously congrats on that.
12 years ago when we bought our house we were at around 25%.
Between 1 refi that dropped our interest a lot, and a lot more income than 12 years ago, that’s what got us to the % I listed above.
Use that low number to invest in IRA/401k and/or pay off your house way early.
That is a great job to get something livable at that low % unless you are making like $250k/yr or more.
My income can be pretty variable. I'd say my house payment is about 8-12% of gross income (excluding utilities). But if you only look at the interest portion it's considerably lower.
FYI, mortgages in more expensive cities limit out at 40% of household gross income. That may or may not make someone "house poor".
If you're under 25% of gross income you're doing it right.
20%
Past on refinancing this spring. We will likely sell within the next 3-5 years.
Houses in our area are going at a decent price and we can probably get $15k more than what we paid for our home in 2018. We have done some upkeep inside though too.
1/6th
about 20%
a few years ago I was in a different part of the country and it was 36%
15%
Around 22% with 11 years left on the 15 year mortgage.
posted by MontyBrunswickabout 20%
a few years ago I was in a different part of the country and it was 36%
36%...whoa
14.68% on a 15 year, with rate of 2.625%, I'm happy
refy tomorrow to a 20 year @ 3%....knocking 6 years off the mortgage and payment went up a whopping $60 a month
posted by Spockrefy tomorrow to a 20 year @ 3%....knocking 6 years off the mortgage and payment went up a whopping $60 a month
Same. 5.5 years into a 30, about to refi to a 20 year at a similar rate. My rate was higher 5.5 years ago so my payment won't change. That said, 11% of our gross (includes prop insurance and tax), about 15% of net.
To each their own, but why are you guys doing 15-20 year mortgages? You're just accelerating paying down the principal which is returning a lousy 2-2.5% after taxes.
You can debate paying a little more to lock-in a rate for 30 years, but when you crunch the numbers it's hard to beat the savings on a 5 or 7-yr ARM. Rates have been low for 10+ years, and I don't see that changing significantly over the next 10 years.
posted by gutTo each their own, but why are you guys doing 15-20 year mortgages? You're just accelerating paying down the principal which is returning a lousy 2-2.5% after taxes.
You can debate paying a little more to lock-in a rate for 30 years, but when you crunch the numbers it's hard to beat the savings on a 5 or 7-yr ARM. Rates have been low for 10+ years, and I don't see that changing significantly over the next 10 years.
Care to explain a little better to a gym teacher? We had a 30 year mortgage to buy our house, refinanced 1x and have 7 years left. Been here 17 years.
posted by gutTo each their own, but why are you guys doing 15-20 year mortgages? You're just accelerating paying down the principal which is returning a lousy 2-2.5% after taxes.
You can debate paying a little more to lock-in a rate for 30 years, but when you crunch the numbers it's hard to beat the savings on a 5 or 7-yr ARM. Rates have been low for 10+ years, and I don't see that changing significantly over the next 10 years.
Care to explain a little better to a gym teacher? We had a 30 year mortgage to buy our house, refinanced 1x and have 7 years left. Been here 17 years.
We are fortunate in this regard. No house payment.
We had a 15 mortage that we paid off around 9 years agao.
Our house is paid off that is one of the benefits of being old and married for a long time.
posted by Ironman92Care to explain a little better to a gym teacher? We had a 30 year mortgage to buy our house, refinanced 1x and have 7 years left. Been here 17 years.
It's mainly a savings vehicle. On your taxes, only the interest is deductible. A house generally appreciates at about 2.5-3% per year. And there currently is an exemption of up to $500k capital gain for a married couple - meaning the gain is completely tax free. So you borrow money to buy the house at about 2% after tax, meanwhile it's appreciating at about 3% per year after tax.
So when you pay down the loan, you're only saving the after-tax interest. That means putting money into your house will yield a fixed 2% after-tax return. I would sincerely hope we could all beat that in the market over the long term, even with conservative investments.
Taking out a 15-yr fixed rate loan right now when 10-yr ARM's are available at 2.75% makes no sense to me. The slightly higher fixed rate loan will cost you thousands of dollars over 10 years, and saddle you with a larger payment with an ROI of 2%. But it's a great idea for people who can't save/invest their money.