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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]These numbers are annoying.

I’ll answer truthfully. 31%

I got this number from glancing at my bank statement. I took the full amount of my PITI that’s automatically paid to my mortgage company and divided it by the amount that’s direct deposited into my account. Things like health insurance and retirement contributions are automatically deducted from that amount. I could easily have tried to make this ratio look better by using gross salary or excluding insurance from the mortgage payment but that’s an exercise in stupidity. The amount direct deposited in my account is realistically what I have access to each month. [/quote]

I'm not sure people are using gross to make their ratio look "better."  It's just the easiest way to create an even-ish benchmark.  Maybe health care, taxes and SSN should be deducted from gross income, but why retirement contributions? That's really a choice.  And then why stop there...why not daycare, car payment, etc?[/quote]

DP. This, plus I don't have an easy way to calculate our take home pay. I get a bonus every year which is usually about 15-20% of my total pay but is discretionary, and DH is a partner and gets quarterly disbursements and a year end share of profits payout plus we have to make quarterly tax payments out of pocket. So our cash flows are spiky. If I estimate that we take home 60% of our gross pay, our mortgage + insurance + property tax is about 9% of that. We live in CCDC and bought in 2018.[/quote]

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