Out of curiosity, what is your mortgage payment as a percentage of your gross HHI

[Anonymous]

13:36 poster. Child care and housing take up 65% of net HHI.

[Anonymous]

PITI 16% of gross
Child care 19% of gross

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:27% with tax and insurance.

That seems like a lot, but we max 2 401Ks and have a dependant care account so that takes a lot out of pre-tax income.

the question was of GROSS HHI. That means before 401ks and dependent care and health insurance, taxes and anything else.

What sense does this make though? It doesn't really tell you anything about your budget.

It tells OP what she asked about, and it helps you compare with others in this thread. Though, that said, I think that many on this thread don't know how to work this out and/or dont' know the difference between net and gross.

[Anonymous]

15.4% of gross HHI. But this doesn't include insurance, property taxes, or condo fees. Adding those makes it about 23%

[Anonymous]

31% of Gross HHI, including insurance and property taxes.

[Anonymous]

14% of gross, including property taxes and insurance.

[Anonymous]

15.8% of gross. PITI

to PP asking "why gross?". It's because NET is influenced by a multitude of factors including retirement, health care, tax rates, etc. Using % gross is the best way to compare across different households and financial situations.

[Anonymous]

11%

[Anonymous]

10.1% of gross

[Anonymous]

About 17% of gross.

But I think the real question is this -- after you pay your mortgage, what do you have left over to do everything else?

Our mortgage is small & our income is relatively small.

[Anonymous]

Anonymous wrote:15.8% of gross. PITI

to PP asking "why gross?". It's because NET is influenced by a multitude of factors including retirement, health care, tax rates, etc. Using % gross is the best way to compare across different households and financial situations.

Correct, but it's still a percentage of an unknown amount - PPs aren't disclosing income either way - and doesn't actually tell you anything precisely because of all of those variable factors. I could argue that using net is better in this comparison context because it's less abstract. As someone doing calculations in preparation to buy, I'm actually more curious about how much of everyone's take-home pay goes to their mortgage each month. Don't know about anyone else, but my gross salary amount means little to me.

I apologize because I know that debate is not what the OP asked for, but it never made sense to me to look at it that way.

[Anonymous]

9% for the mortgage alone, 11% with taxes. HHI was lower when we bought (and then even lower while one of us was in grad school - I think we were at 36% then), and while it's higher now I don't want to handcuff myself to a bigger mortgage/the jobs necessary to pay a bigger mortgage.

[Anonymous]

Anonymous wrote:15.8% of gross. PITI

to PP asking "why gross?". It's because NET is influenced by a multitude of factors including retirement, health care, tax rates, etc. Using % gross is the best way to compare across different households and financial situations.

gross makes no sense, because it includes taxes. that is money you don't have and will never have, so why is it relevant? i could make $10 million a year, but if i pay $9.9 million of it in taxes, should i calculate my mortgage, savings rate, etc. as a portion of $10 million?

for the reasons you mentioned, net also makes no sense if you are excluding retirement, healthcare, etc. but i don't see why taxes should be included.

[Anonymous]

PITI is 18% of gross (20 year loan).
Childcare is 23% of gross.

[Anonymous]

Anonymous wrote:PITI is 18% of gross (20 year loan).
Childcare is 23% of gross.

I don't like using net because it's scary.

PITI is 32% of net
Childcare is 43% of net (preemies that can't be in daycare first two years)