Comments on: What Percentage of Your Income Goes to Pay Your Rent or Mortgage Payment? http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Randy http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-441089 Randy Fri, 11 Dec 2009 17:42:22 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-441089 30% of gross 41% of net We own our home in the San Francisco Bay Area. 30% of gross
41% of net

We own our home in the San Francisco Bay Area.

]]> By: gmoney http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-425142 gmoney Fri, 12 Jun 2009 06:25:43 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-425142 10% of gross 6.5% of net renting in troy ny babY! 10% of gross

6.5% of net

renting in
troy ny babY!

]]> By: john http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-363527 john Wed, 24 Sep 2008 14:53:43 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-363527 Mine is 19% of gross 28% of net We make 132,000 per year (two teachers) and our mortgage/insurance/taxes are 2050 per month. Mine is 19% of gross
28% of net

We make 132,000 per year (two teachers) and our mortgage/insurance/taxes are 2050 per month.

]]> By: Shandi http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-347155 Shandi Fri, 15 Aug 2008 02:55:11 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-347155 we pay 5.3% of net income and we rent! we actually think we pay too much! we pay 5.3% of net income and we rent! we actually think we pay too much!

]]> By: k http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-304322 k Mon, 05 May 2008 23:46:43 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-304322 Renting as of today: 26% of net Soon to be buying: 38-40% of net P.S. Not everyone "chooses" where to live--some of us have to go where the job is. Hence home equity is not always just a lifestyle choice. If I had a viable choice I'd go where it's much, much cheaper to live. (i.e., not Rhode Island) Renting as of today: 26% of net
Soon to be buying: 38-40% of net

P.S. Not everyone “chooses” where to live–some of us have to go where the job is. Hence home equity is not always just a lifestyle choice. If I had a viable choice I’d go where it’s much, much cheaper to live. (i.e., not Rhode Island)

]]> By: Ste http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-70773 Ste Sat, 03 Feb 2007 15:08:56 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-70773 About 15% of gross in San Diego (bought house in 1999 fortunately). If I was still in my 20's, I'd think long and hard before deciding to live between San Diego and Seattle on the West Coast or between DC and Boston on the east coast. Sure you make more, but you pay a lot for quality of life. I don't buy into the idea that home equity is an investment; its a place to live and a lifestyle choice. About 15% of gross in San Diego (bought house in 1999 fortunately). If I was still in my 20′s, I’d think long and hard before deciding to live between San Diego and Seattle on the West Coast or between DC and Boston on the east coast. Sure you make more, but you pay a lot for quality of life. I don’t buy into the idea that home equity is an investment; its a place to live and a lifestyle choice.

]]> By: LivingAlmostLarge http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-70251 LivingAlmostLarge Fri, 02 Feb 2007 04:04:30 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-70251 Own in metro MA area. PITI is I guess 40% of net (not sure), and 28% of gross. Own in metro MA area. PITI is I guess 40% of net (not sure), and 28% of gross.

]]> By: MoneyFwd http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-69791 MoneyFwd Thu, 01 Feb 2007 15:37:51 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-69791 Currently 49% of net. (Boston Area) I wish we could do better, but we can't find a decent place for under what we pay in our area. Currently 49% of net. (Boston Area) I wish we could do better, but we can’t find a decent place for under what we pay in our area.

]]> By: Walter http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-69212 Walter Wed, 31 Jan 2007 16:42:10 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-69212 I own my home in Fayetteville, Arkansas. My family of five ( myself, wife, and 3 children) is a single income family. We do OK only because we have zero debt outside our mortgage. I took a +25% (gross) pay cut two years ago to leave a high stress job at a large publicly traded company for a job I enjoy at a state university with loads of benefits. I know several people who dream of doing the same thing but have to much debt to make less money. There are always costs associated with high debt. PITI to net income is 21.67% PITI to gross income is 14.91% I own my home in Fayetteville, Arkansas. My family of five ( myself, wife, and 3 children) is a single income family. We do OK only because we have zero debt outside our mortgage. I took a +25% (gross) pay cut two years ago to leave a high stress job at a large publicly traded company for a job I enjoy at a state university with loads of benefits. I know several people who dream of doing the same thing but have to much debt to make less money. There are always costs associated with high debt.

PITI to net income is 21.67%
PITI to gross income is 14.91%

]]> By: Huskerland http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/comment-page-1/#comment-69166 Huskerland Wed, 31 Jan 2007 13:53:24 +0000 http://allfinancialmatters.com/2007/01/30/what-percentage-of-your-income-goes-to-pay-your-rent-or-mortgage-payment/#comment-69166 I own in Lincoln, NE. Debt to Income Ratio for Housing - 7.8% of gross It's best to figure this ratio off gross income, that way tax witholdings, insurance, etc. don't skew the numbers. It allows the banks to compare apples to apples when approving clients. Under conventional mortgage loan guidelines, your total housing expense should not exceed 28% of your gross income. Your housing plus any other debt (student loans, auto loans, credit cards, etc.) should not exceed 36% of your gross income. I have both of those ratios calculated at the bottom of my budget so I can always see where I'm at for DTI ratios. I own in Lincoln, NE.
Debt to Income Ratio for Housing – 7.8% of gross

It’s best to figure this ratio off gross income, that way tax witholdings, insurance, etc. don’t skew the numbers. It allows the banks to compare apples to apples when approving clients.

Under conventional mortgage loan guidelines, your total housing expense should not exceed 28% of your gross income. Your housing plus any other debt (student loans, auto loans, credit cards, etc.) should not exceed 36% of your gross income.

I have both of those ratios calculated at the bottom of my budget so I can always see where I’m at for DTI ratios.

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