Reply to What % of your income goes towards your mortgage?

Forum Index » Real Estate

Reply to "What % of your income goes towards your mortgage?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I know GROSS is what everyone looks at, but I think looking at NET is what you should be looking at if budgeting on a month to month basis.  We NET $15K a month, mortgage + taxes and insurance is right at $5K.  Our GROSS is probably closer to $30K but we max 401K plus catch up contributions, and we withhold "0". [/quote]

Net though is highly dependent on personal choices as you kind of implied. My net changes a lot based on things like health, education and retirement accounts, tax issues, etc.

Gross in my opinion is far more easily comparable across households. For me PITI is 21% of gross.[/quote]

In addition to this, about 30% of my compensation is either deferred or paid an irregular intervals, and so it doesn't factor into monthly cashflow, and we don't take it into account when figuring how much we can incur in monthly expenses.  I know what our gross is, but it's a huge hassle to figure out net monthly income.  [/quote]

Yes but I think the majority of people have a pretty predictable monthly NET.  I know what ours is from Jan-April, that's usually when DH maxes out the social security portion of his pay and his paycheck increases about by about $1000-$1200 a month for the rest of the year. He gets an annual bonus paid in March, but I don't include that in our budget. We just put as much of that away as possible.[/quote]

On the other hand, if your DH maxes out his Social Security taxes in April, he's probably making about $500,000, which means you can afford even a very expensive mortgage.[/quote]

I wasn't arguing what we could or could not afford in a mortgage.  Don't turn this into THAT conversation, as there are plenty of those already.  Also your math is incorrect. His salary is gross $311K not $500K, he pays into social security THROUGH April. Right around May is when his paycheck increases due to maxing that portion out.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics