% Net Income goes to rent/house payment

Ironman92 Administrator
56,729 posts 140 reps Joined Nov 2009
Sat, Jul 11, 2020 1:25 PM

Our house payment includes taxes and insurance but we pay right at 11% of our net earnings to our house payment 


friendfromlowry Senior Member
7,778 posts 70 reps Joined Nov 2009
Sat, Jul 11, 2020 2:15 PM

Same with insurance/taxes. Ours is a little less than 25%.

jmog Senior Member
7,737 posts 36 reps Joined Nov 2009
Sat, Jul 11, 2020 2:17 PM
posted by Ironman92

Our 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%.


justincredible Honorable Admin
37,969 posts 191 reps Joined Nov 2009
Sat, Jul 11, 2020 2:28 PM

Somewhere around 10%-12%, i believe. 

queencitybuckeye Senior Member
8,068 posts 109 reps Joined Nov 2009
Sat, Jul 11, 2020 2:40 PM

Around 11%.

Fab4Runner Tits McGee
6,997 posts 64 reps Joined Nov 2009
Sat, Jul 11, 2020 2:54 PM

4.8% lol. About 8% if you include gas, electric and water.

Ironman92 Administrator
56,729 posts 140 reps Joined Nov 2009
Sun, Jul 12, 2020 9:27 PM
posted by Fab4Runner

4.8% lol. About 8% if you include gas, electric and water.

No definitely not including utilities.


Ironman92 Administrator
56,729 posts 140 reps Joined Nov 2009
Sun, Jul 12, 2020 9:28 PM
posted by jmog

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%.


Yeah, sorry just assumed a bit on that stuff being taken out of check 


kizer permanente Senior Member
1,309 posts 14 reps Joined Aug 2017
Sun, Jul 12, 2020 11:04 PM

15% 

jmog Senior Member
7,737 posts 36 reps Joined Nov 2009
Mon, Jul 13, 2020 12:21 AM
posted by Fab4Runner

4.8% 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.


gut Senior Member
18,369 posts 91 reps Joined Nov 2009
Mon, Jul 13, 2020 12:49 AM

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.

birddog23 Senior Member
1,173 posts 6 reps Joined Aug 2010
Mon, Jul 13, 2020 7:39 AM

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.

Spock Senior Member
5,271 posts 8 reps Joined Jul 2013
Mon, Jul 13, 2020 7:55 AM

1/6th

MontyBrunswick Senior Member
1,065 posts 15 reps Joined Mar 2015
Mon, Jul 13, 2020 8:26 AM

about 20%

a few years ago I was in a different part of the country and it was 36%

thavoice Senior Member
15,437 posts 41 reps Joined Nov 2009
Mon, Jul 13, 2020 12:23 PM

15%

rip34 Member
76 posts 6 reps Joined Nov 2009
Mon, Jul 13, 2020 12:33 PM

Around 22% with 11 years left on the 15 year mortgage.  

Ironman92 Administrator
56,729 posts 140 reps Joined Nov 2009
Mon, Jul 13, 2020 12:39 PM
posted by MontyBrunswick

about 20%

a few years ago I was in a different part of the country and it was 36%

36%...whoa


Verbal Kint Senior Member
1,062 posts 14 reps Joined Jul 2017
Mon, Jul 13, 2020 1:39 PM

14.68% on a 15 year, with rate of 2.625%, I'm happy

Spock Senior Member
5,271 posts 8 reps Joined Jul 2013
Mon, Jul 13, 2020 2:18 PM

refy tomorrow to a 20 year @ 3%....knocking 6 years off the mortgage and payment went up a whopping $60 a month

iclfan2 Reppin' the 330/216/843
9,465 posts 79 reps Joined Nov 2009
Mon, Jul 13, 2020 2:24 PM
posted by Spock

refy 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. 

gut Senior Member
18,369 posts 91 reps Joined Nov 2009
Mon, Jul 13, 2020 2:32 PM

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.

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