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What percentage of your income goes to rent/ mortgage?

A

AppleLover9o

macrumors regular
Original poster
Aug 2, 2009
170
1
After reading through the "trust fund" thread, it got me wondering. After reading this post

Originally Posted by Iscariot
The OP also said he has a "paid for" house, which suggests that he doesn't have to pay rent or a mortgage. If that's the case, his expenses drop dramatically and $3 000 becomes a lot of money.

I started to wonder, what percentage of your income goes toward your mortgage/ rent? How much easier is life when the house is paid for and you have a good income?

Thanks,
-AL9O :apple:
 
I'm assuming you mean as a percentage of my take home pay (i.e. after taxes, retirement, SS, health/dental/vision/life, etc...).

Right now it's about 19%. When my wife was working, it was 11% or so. It'll be nice when she gets her job back. :(
 
No, I think you guy's are misunderstanding. I mean.

How much is the percentage of your income you "lose" to home payments.

Sorry.

-AL9O
 
leekohler said:
Less than a quarter. That's how it should be.
Click to expand...

Yeah, it seems to me that when I first moved back to Socal and was looking for places to rent, the rule of thumb is that the rent couldn't be more than a third of your take home pay. A few months back my wife and I were house shopping, and it was amazing that the banks were still willing to lend money such that with property taxes, association fees, and so on - we'd be pushing close to 40%. I find that wholly irresponsible - the banks obviously haven't learned.
 
Probably between 25 and 33%. I pay a premium to live downtown, which has the benefit of reducing my travel costs to about ~$100/month, so my expenses overall represent less than 35% of my income.
 
before I moved back home after losing my job I was paying less than 1/4 my gross in Rent/ Utilities.

With a take home pay of 2800 a month i was putting in the bank about 6-700 a month. Not back considering that was after everything was paid for including fun stuff.
 
I'm retired.

I rented until I was 45. Then my best friend talked me into buying a house. Then I moved once so mine isn't paid for. My mortgage is 24.6% of my retirement income.

Terry
 
I'm overpaying into my mortgage every month (by about 50% of my normal payment) to pay it off early. So right now 40% of my take-home pay goes into paying it :eek:

But I can stop overpaying whenever I want and I could use the overpayments to take a payment holiday if I really needed to (or if interest rates go through the roof reset the mortgage to it's original term and pay less instead of paying off early). So basically it's all money in the bank right now.
 
Paying extra

robbieduncan said:
I'm overpaying into my mortgage every month (by about 50% of my normal payment) to pay it off early. So right now 40% of my take-home pay goes into paying it :eek:

But I can stop overpaying whenever I want and I could use the overpayments to take a payment holiday if I really needed to (or if interest rates go through the roof reset the mortgage to it's original term and pay less instead of paying off early). So basically it's all money in the bank right now.
Click to expand...

My "other half" and I do the same. We're both fresh out of school and recently started our permanent jobs. We decided to continue living our student lifestyle more or less, despite the higher and more regular income. We're a bit more on the frugal side, just meaning we think twice before spending money.

The additional money that we put into our mortgage is probably money we would have wasted away random everyday bull* anyway. So right now about 40-45% of our total after tax income is mortgage payments (principal+interest)

But it's nice to know that it will also give us a bit more financial flexibility in the future if interest rates go up a lot, or one of us become unemployed.
 
33% on my mortgage, that excludes my real estate taxes - 42% with my taxes.

Its a tad high because of one important fact. My wife is unemployed. Drops into the 20% when she was working but that was 9 months ago :(
 
Some financial folks suggest 25% or less of net pay for your mortgage. Others suggest less than 30% of your gross pay where housing costs include your mortgage, insurance, property taxes, utilities, maintenance fees, homeowner's fees, parking fees, etc.

Using the gross pay method, we're less than 30% We'd like to be less than 25% Unfortunately, Japan is expensive!
 
As a student, just under 51% of my income goes on accommodation. It's not so bad that rates, insurance and services are included so the other 49% is spent on food, books and travel.

Don't spend much on travel as I live on campus about 2 minutes from my lecture theatre! :rolleyes:
 
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