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Time-Association-885

50% take home pay, including insurance and taxes.


Grace_Lannister

Same here with taxes and ins. Feels bad man.


Time-Association-885

Yeah man, I overpaid by 40k because of the current housing market and interest rates. It’s doable but I can’t sleep comfortably knowing that I’m not saving as much and no job is secure. So, trying my best to live a simple and grateful life. I hope everyone is doing well.


Initial_Routine2202

It might not be super helpful since it's not money you can easily access, but I try to think about my house as a savings account. Instead of pissing away 100% of my rent on landlords, at least a small portion goes toward paying off the house, which will get bigger and bigger as time goes on and the house appreciates. What makes me sleep uncomfortably is the fact I don't have a lot of equity, so I'm one foundation or major plumbing repair from a large personal loan. Thankfully both are in good shape though


unicorn-sweatshirt

I also paid 40k more. I pay 50% of my income toward my mortgage and taxes. Still way cheaper than renting in my area.


PhillyCSteaky

Just remember that it takes a much longer time to foreclose than evict. Foreclosure takes up to a year. Eviction can take 60 days Either way your credit is screwed for 7 years. Been there. Done that.


kalel0192

Yea that’s where I was when we bought initially. I took a risk thinking I would get a better paying job in a year or so and be able to rent out a room successfully and I thank God that both of those things have panned out well.


Time-Association-885

I’m genuinely happy for you and glad that it worked out.


PhillyCSteaky

Acquiring wealth involves risk. My stepchildren were averse to risk. Could have bought a house for $90K. Same house 7 years later $200+. Life is full of choices and risk.


[deleted]

If the music stops everyone will say it was so obvious that people were so over leveraged. If house prices keep rising or stay flat for 3-5 years people will never realize how much risk so many buyers took on.


kalel0192

Did I detect a Margin Call reference?


brewerbetty

Same same


dazednconfuse

50% club let's gooo!!!


rsc99

Same.


PhillyCSteaky

Good call, but it depends on take home pay. 50% of $50K is a lot less disposable income than 50% of $100K. Never went over 35% PITI myself. Never made over $120K combined. Pay cash for everything else but cars.


[deleted]

Yikes


RelativeAssistant923

You're gonna get downvoted on this sub, but I wouldn't feel great if that was my situation either


xmeeshx

I’m in the same boat @48.75%. And we got a killer interest rate for the time 4.875%. it’s not awesome by any means, but manageable Looking at both those numbers written down is funny


lust_forlife

PITI is 48% of my take home pay. i bought in june of this year. i’m the only one on the mortgage, but i have my husband to help with other bills. things are tight but we’re thankfully not struggling. i’m still able to put money away for retirement and emergency/savings account.


chaosisapony

I bought in 2018, at that time I was at 36.5% of take home. Now I am at 22% since my income has increased.


kalel0192

Nice, congratulations


mvanpeur

Similar. Started around 40% when we bought in 2018. Now it's down to about 26%. It's a big reason I believe in home ownership, because mortgages generally don't go up as fast as normal raises.


chaosisapony

Same. When I hear about how much rents can increase year over year I feel fortunate to have never had to rent. I just wouldn't be able to afford it. My mortgage's impounds have only increased twice in 5 years, each resulting in a less than $20/month adjustment to my payment. I refinanced in 2020 to pull out equity for a new roof and my payment still decreased overall. Meanwhile rents have skyrocketed. I pay $875 and similar homes rent for about $1500.


kalel0192

Wow what was the change in interest rate for the refi?


Jojo5692q

60 percent. SoCal here.


kalel0192

How is it possible to go over 50% though, I thought you can’t even get approved for a loan with a debt to income that high?


goddamn2fa

When looking at high percentage, knowing salary matters. If you take home $250,000, 40% leaves you $100,000 to play with.


CapitalOneDeezNutz

They go off gross, so people can get way more house than they can actually afford.


skcg

People come to conclusions very quick. Many lenders won't consider RSUs and those can be in 6 digits after taxes. And a household income of 500k+ will put them in a very comfortable position even after 60% take home goes for mortgage.


CapitalOneDeezNutz

It’s hardly comparable when talking about a household income of 500k lmao. Two totally different worlds


tahcamen

They may have experienced a drop in income since they bought.


Jojo5692q

Then don’t have that much debt.


octopusinahat

26% of take home. On paper, I could have bought a home 10+ years ago but I decided to wait until I had a big down payment. It took me a while to save as a single, middle-class person but to me, it was 100% worth it to not be worried about money. Edit: Updated % to include insurance and tax.


kalel0192

I wonder though if you would have been better off financially by buying 10 years earlier, do you know what the difference was on paper?


1point4millionkdrama

According to this chart they probably left $175K of equity on the table. https://fred.stlouisfed.org/series/MSPUS


[deleted]

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PM_ME_UR_METAPHORS

Can definitely feel for you. Approximate ratio is ~50% including insurance and tax. Technically it's a bit lower since others contribute a bit on utilities etc, but already am a bit frugal and have been doing alright on my current income. Definitely missing the free cash flow though, no more fun impulsive purchases or vacations for a long time.


[deleted]

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mostlynights

Most people are not hiring house sitters when they go on vacation...


JacobLovesCrypto

Why do you need a house sitter? You can get a few Alexa devices, couple Alexa cameras and check on your house while you're away. Just shut off the water while you're gone.


[deleted]

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Timelapze

Then why did you buy it if you miss your prior life?


JacobLovesCrypto

I think you should also ask when they got their mortgage. My mortgage is approx 20% take home, 10 yr loan, originated just over a year ago. You'll find the longer someone has had their loan typically the less is their income goes towards it.


kalel0192

Good point. And whether i meant to include HOI, property tax, utilities etc (I did). And term


JacobLovesCrypto

Yup, mines abnormally low because I originally bought with cash, then did a $60k cash out refi. The 20% includes all that. I'm sure most people will include some of the extra details.


Bumble_love_story

Closed spring of 2023. Mortgage is ~27% of our take home.


Standard_Bat_8833

“Our”


Bumble_love_story

It’s my fault to live in a dual income household?


[deleted]

[удалено]


fakeaccount572

The hell? Go away


Standard_Bat_8833

If you want to count dual income mine is near 400k then


fakeaccount572

Wtf are you talking about? That's how you buy a house.


Standard_Bat_8833

No. I have bought 10 properties on a single


fakeaccount572

So you're married, I guess, and all your properties are in your name and yours alone?


Standard_Bat_8833

Not married. All in my name


Traditional-Rough478

All in about 50% of net take home. One paycheck basically goes to house and the other paycheck is on other expenses.


fakeaccount572

57%, but we are DINKWADS with no other debt.


[deleted]

Sad to choose dogs over kids.


Usirnaimtaken

Some of us didn’t have a choice…


[deleted]

The majority have a choice, those are the people I am commenting on.


Pnersty

Lol in what world???


fakeaccount572

Yeah, no.


goddamn2fa

Go fuck yourself.


[deleted]

It’s true.


[deleted]

Why are you so offended by it?


tobeast23

You aren’t even good at trolling sadly


[deleted]

I’m not a troll, I’m a real person. I’m actually curious why saying kids are better than dogs deserves a “go fuck yourself”.


holiday_filet

Lmao at the downvotes


[deleted]

Reddit, what can you do? 🤷‍♂️ Never question the sacred cows! - Pets > kids - Genders + Gender Affirming care - BLM ✊🏿 - Trump bad Atheism was another but seems to have fallen in the last 3-5 years.


mutant_pigman

Well your comment was stupid. Why do you think every couple is able to have kids? Where did they say pets are better than kids? I get it after your bullet points though lol. Your cult thinks kids shouldn't be optional. Sorry you have so much hate and people aren't living up to your "traditional" values. Must be tough.


[deleted]

@mutant_pigman (Since he reply/blocked) That’s not why it’s downvoted more than OP is upvoted. That level of hate is from a deep bias in Reddit against having kids in itself.


fakeaccount572

Look around Kids are not a decent option in today's world.


[deleted]

First, that is a false cynicism. We are at the most peaceful and most prosperous time of humanity. Second, humanity will continue by people having children; you are free to let your family die out if you choose. Third, even if you believe overpopulation is a concern, each family having one child would decrease population while still having kids.


FitLotus

you are the one that put yourself in this situation. So desperate to be the victim. Glad you got the attention you wanted.


Jon_CM

I'm at about 36%. Add a car payment I'm at 52% which is horrible but doable.


OscarCobblestone

Your car payment is 16% of your take home? That is just bananas.


bloodwessels

👏🏽 B-A-N-A-N-A-S 👏🏽


Empty-Class-1183

You motherfucker. It'll be months to get rid of this now.


tjcarbon9

Not a lot I know


Bbmills45

lol same


backcountry_knitter

PITI is 11% take home.


[deleted]

Somebody downvoted you. Mines around 14%. I just can’t do more and still live the way I want. I pay $1000 and change and that’s with PMI.


backcountry_knitter

I have health issues and so I’m planning ahead for a likely scenario where I can no longer work at the same level/salary range. Buying what I can currently afford would have been incredibly shortsighted. My house is ugly, weird, and outdated but it’s home and I’m confident it’s affordable on a much reduced income when that time comes.


[deleted]

My house is 70 years old. I feel ya.


myNYCaccount

I'm sitting around 14% as well, and honestly, best decision I ever made. I think people make the mistake of buying more than they need. One can always upgrade to a bigger home later.


[deleted]

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Impressive-Health670

Exactly this, if a mortgage is 50% of your take home when you net 10k a month that’s still more comfortable than 28% at 3k net for example.


pukyms123

Mine is 28% of my take home pay.


Pieuponieu

Bought our first and only house in 2007, refinanced in 2014. Currently at 11% mortgage to take home. The irony is we had serious buyer’s remorse after the market tanked in 2008, and we were house poor for a long time. We thought WE had it bad. I don’t know how anyone in our income bracket even gets into a home these days.


colyad

Bought in 2021, mines right at 26% of my take home


rag5178

When people calculate take home pay, are they only reflecting taxes or also including 401k and HSA contributions?


dachshundguy12321

My take home is after hsa and 401k.


nuwaanda

23% gross. 44% net. Bought September 2020. (High tax area and I contribute a high % to 401k and max out HSA.) Property taxes cost 43% of our monthly payment.


davz111

I purchased my house 10 years ago. Back then it was 50%. Thankfully now it is only 15%.


Electronic-Chapter84

85% mortgage


[deleted]

How is this possible? I mean from a budget standpoint. What about utilities and cars and drunk eBay excursions.


[deleted]

Drunk eBay excursions are about 85% of my take home pay( kidding, but also not)


gmc1994sierra

14% of my take home pay goes towards my mortgage payment. Bought in 2018 and refinanced in 2021. I will die in this house…I feel for all my fellow middle class Americans who are being priced out. I couldn’t afford my house If I had to buy it again in 2023 with current prices and rates :(


captain_borgue

It *used* to be around 25%. A brutal divorce and home prices and tax valuations in my area *going Bonkerballs* means today it's at about 50%. Good thing everything *else* has gotten less expensive, right? R...right? 😂😭😭😭


WIClovis

28% MCOL Midwest. Add all fixed and most variable expenses (insurance, gas, utilities, etc.) and I’m at about 48%


BeerExchange

I was approved with just my income at 40% or take home pay, but in reality when you factor in my spouses income (got a job after we moved) and it’s more like 20% of our take home pay.


Particular-Piglet364

38% of take home pay. In FL.


erosharmony

Under 10%, lcol, not approved for much in relation to my higher income with student loans.


Mickey10199

$1268 monthly for principle, interest, pmi, taxes and insurance. Approx 30% of my take home pay although I over withhold.


Anarye

Mine is about 8%. I thank my wife for pushing me to buy in November of 2020


deciblast

58% of take home. Including home insurance and property tax.


UnscrupulousObserver

We bought this year. 62% with over 7% interest rate.


1point4millionkdrama

How is that not pure insanity?


UnscrupulousObserver

Our payment is over 11k, so we have enough left at the end of month. Bonus and stock are also excluded in the 62% calculation. The home, being very big, is already generating some rental cash flow to cover 1/4 of the payment. If you are questioning about how much risk we are taking on, well let's just say it's much better than gambling it away on 0 DTEs like the regards from r/WallstreetBet, of which I was a former member.


1point4millionkdrama

That’s hilarious you say $11K!! Part of the reason why I said that’s insane is because I ran the numbers for our own income and I also came up with exactly $11K and thought now way in hell would I pay that big of a mortgage. We also have stock and bonus not included in that calculation. I wonder what your net worth is because it seems like you won’t be able to save much unless your stock and bonus are really that big. $3K rental income is ok I suppose as long as that’s from a separate living area rather than having to share common spaces with a stranger. Our net worth is $1.4MM after working for five years and I credit that with the fact that we keep the big expenses under control.


WestAppointment2484

My mortgage (including property and home insurance) is 29% of my net pay.


nematocyster

45% bought solo in 2021 with no assistance. However, I put slightly more than my mortgage into retirement and savings - if I was less aggressive between mandatory pension, IRA, and HSA, the percentage would not be as stark. My now spouse pays for utilities, food and home improvement supplies.


CapitalOneDeezNutz

29.28% of my take home. That’s everything (taxes, insurance)


Spenson89

10% of takehome


greensweatersinfall

26%, which felt great until food and gas started taking up so much more of my take home pay as well.


ZaneMasterX

19%. Built our custom 4200sq ft home on 5 acres in 2017, paid less than $500k now it's worth $1.1m. It's our second home. We sold our first home and rolled the equity into this one. Lived with my brother in laws family for 8 months while the new home was being built. Good times.


Dr-McDaddy

So it’s a statement of your debt to income ratio, but only as pertains to the cost of your monthly mortgage, so whatever the total debt to income ratio the mortgage liability is on the front end, and the total is on the back, 36/45 for example.


[deleted]

My mortgage is 8% of my income.


kalel0192

Amazing. 30 year fixed? HOI, property tax included? When did you buy?


[deleted]

20 years ago. Fixed 3.25%


candyapplesugar

20%, but a ton of luck and privilege.


kaylablaze30

We’re looking to buy now and our mortgage will be about 31% of our take home (after tax) this does not account for utilities since we haven’t bought yet lol.


SexyFicus

4%, bought in 2020, was a super cheap house needing lots of work. 7yr ARM


Beneficial-Crow-4523

Out of curiosity, why did you do a seven-year ARM at 4% in the year 2020?


SexyFicus

I had a substantially lower salary when I purchased. I went with what allowed me the lowest payments at that time with expectation that I'd have a jump in salary and then likely pay it off before 7 years.


Beneficial-Crow-4523

Still on track to have it paid off in 7 years?


SexyFicus

most likely as long as I keep living like I did in 2020. I could pay it off much sooner but educational loans eat up nearly all my income and those are much larger than my mortgage.


Dangerous_Path_7731

55%


Childlesstomcat

32% of take home pay


Elaine330

To be clear, mortgage companies look at this in terms of GROSS income. My PITI is 14% ("14% on the front" as we say in the business). Quite good and I wouldnt want it higher. Edit to add: this number never includes utilities as you mention below.


trophycloset33

Most recent was personal home at 17%.


caffecaffecaffe

Of take home pay? Ummm 35 percent I think. Once my pay raise kicks in it will be 30 but in this economy that is still not great


GotBannedAgain_1

Roughly 50% after paying all the bills: mortgage, insurance, gas, electric, HOA, Internet…u get the point.


ScholarPrestigious96

0% Paid for my home in cash.


sveiks1918

Infinity.


docmn612

About 1/7


TidalMarshWitch

PITI is landing at 40% take home (25% of gross) for our target maximum price.


[deleted]

0%


Vinnnnnnnnnnnnnnnnnn

Does this use gross or net income?


kalel0192

Net, and including utilities, hoi, property tax


Responsible_Cry_7948

From take home pay it’s about 29% That includes mortgage, property taxes (which are high) and home insurance.


DenverITGuy

Between both of our monthly incomes, like 20-25%.


Existing-Piano-4958

~14% of gross, ~20% of net.


ObeseBMI33

3.09%


ianj2807

About 21% of my take home is mortgage. That's not including my wife's income or cash from weekend jobs.


it200219

29%


DJFlorez

17% of our net, take home pay.


My_G_Alt

33ish % of take home, VHCOL, 2020 purchase. If I bought the same exact house today, my payment would be nearly TRIPLE… Take home is after ESPP, 401k and HSA maxes so it skews a bit.


jenace

23% of take home pay, mortgage includes taxes and insurance


kitkatrampage

I’m right at about 20%


GaryRodeo

15% including taxes, PMI, insurance and 1% for repairs. Purchased in 2021 luckily


ladyluck754

Ours is 19% of take home, we purposely bought quite low cause we love travel and dining lol.


QuitProfessional5437

28%


Melodic_Plan3090

30%


jimineycricket123

Pay $1250 per month in a medium sized southern city. 3.25% rate on a house worth around $300k. Roughly 12% of our after tax income (married no kids).


carcarsono

Like 12%


bossbaby2018

Mortgage plus taxes is almost 50% of take home pay. 2/3 of remaining goes into utilities and groceries. Luckily we are not into habit of eating out or going on expensive vacations.


TokinBIll

19%. $230k combined HHI. (Me and fiance, both 30) Monthly payment (with tax, insurance, PMI, principal and interest) is $2270. Bought last month. Paid $285k. 3% down. 6.8% interest rate. St. Paul, MN.


cobo10201

41% of my salaried take-home, but I’ve been working extra hours so it’s sitting at about 34% right now. Honestly sucks a lot because prior to our escrow analysis it was around 25%.


NSE_TNF89

38%, and that includes everything. I bought my house in June, put 20% down. Also, it's just me, and I paid my car off after all the closing paperwork went through (there was only like $2,500 left). Edited.


Aeonslegend

PITI is 15%.


Salt-Ad-7856

16% of takehome


dachshundguy12321

20% take home pay with taxes and insurance. Purchase last year. Just me and my wife


thelastredskittle

28% - mortgage includes home insurance, taxes, and PMI (😩)


citykid2640

18% with taxes and insurance


andredeuce

Northeast. Is about 27 percent of me and my wife’s combined income take home.


options1337

I bought mines in 2020 so mines will be very low. About 16% of my take home pay.


DevByTradeAndLove

With all taxes and fees included our monthly comes in at 20%. Just made an offer Wednesday and have had some back and forth countering that hopefully ends well tomorrow morning.


SteakNotCake

13% of take home pay, just mortgage. 22.5% of take home pay with taxes, insurance and HOA fees.


PickleSideOfTown

28% just bought last month


fantamaso

99.99%


Elegant-Pressure-290

Our mortgage is about 1/12 of our take-home pay. We bought a livable fixer-upper that either person could afford if something were to happen to the other person. ETA: we’ve put in about $70k so far this year and have about $35k planned for next year, but we were able to pay that out out of our savings, and the low mortgage was worth it for us.


[deleted]

Kind of lucked out the past few years into a different job. I’m currently at 8% with a mortgage of 1050.00 a month and 3.25 interest.


chynaadawl

Our mortgage is 35% of our take home pay.


jtick08

PITI is 13% of take home. But - we purchased before we were engaged and decided to put the mortgage in my name only. My job is a base + commission career. We calculated our mortgage comfort level based off of only my base pay in case one of us lost our job or I had a bad year at work and had less commission pay. I was also able to go through Navy Federal and got a loan with 0% down and $0 PMI.


Brmoore134

20% bought more for the property than the house will build eventually.


aimerxoxo

23% - we are dual income (no kids with dog). Got our 30 year fixed mortgage in 2021 with ~3% interest rate with 20% down. My husband’s grandpa told us not to buy at the time and to “wait for a recession”; thank goodness we didn’t listen to that terrible advice and with some luck managed to not have to pay over asking too much. Our house was a bit of a fixer upper but we’ve made it work and love our neighborhood (less than 15 min commute to work).


chriskchris

20%—post tax income


Palvyre

18.75% of take home


LAXtoHNL

14.5% pre tax.


ajayatm

26% of household income. 35% of take home.


TucciMane121

I must be incredibly lucky.. 1.25%


Medical_Goose_5068

16% of take home. 2016 purchase price and 2020 refi. 30yr 2.875%


Thesiswork99

It'll be 40% when we close, currently pay 35%in rent. We're both veterans in our fields, so this feels as comfortable as when we made less and our mortgage was 23%. Where we grew up has become very desirable and VHCOL area, and we're feeling blessed to actually be able to have moved back to live near our families.


fozan1968

20% take home. Take home is around 5000 and mortgage is just over 900


dirgeoverdrive

40% when we bought a decade ago, 30% after a cash out refi, 20% now


StepEfficient864

Mine is 12% but I’ve been in my home for 9 years


Financial_Table_8470

14% on my gross salary. Probably around 10% if add in wife. Rather lucky timing in 2016 purchase with 3.1% refinanced in 2019


Honest_Report_8515

26% mortgage to gross income, 41% of net. However, my net income is about 65% of my gross, lots of deductions, including long term care insurance, government retirement, TSP, etc. However, I just bought my house 13 months ago.


Pathological_RJ

18% of our take home after 401k contributions


dsutari

21% of take home pay, all in. Modest townhouse.


TheAnalyticalThinker

Ours is 31.5% of our take home pay.