How much mortgage you have on how much income?

[Deleted]

Looking to buy a house, curious as to what people across the globe consider a normal mortgage for an income.

Currently looking at a 240.000 house with 70.000 income before taxes.

So how much is your income before taxes. How much did you pay for your house? (loan).
How much do you pay a month to pay off the mortgage?

[Jotaux]

Well, I have 3 mortgages. One is for my brother's place (he couldn't get a mortgage on his own), one is for my place, and the other is for an apartment I rent out. I'm basically tapped out and can't get another mortgage at my income level. When calculating income they typically take rent at 1/2 value as well.

I pay about $900 for my mortgage per month. When I bought I put 60k down and took a mortgage for 240k. My rate is currently 2.1%

I think the general rule of thumb is no more than 30% of your after tax income should be mortgage payments.

[zenkai]

Looking to buy a house, curious as to what people across the globe consider a normal mortgage for an income.

Currently looking at a 240.000 house with 70.000 income before taxes.

So how much is your income before taxes. How much did you pay for your house? (loan).
How much do you pay a month to pay off the mortgage?

You're mortgage payment should be no larger than 1/4 of your monthly NET income, you're going to need money for upkeep, taxes, insurance etc. That's what I was taught and it works well for me

[Manhands]

You're mortgage payment should be no larger than 1/4 of your monthly NET income, you're going to need money for upkeep, taxes, insurance etc. That's what I was taught and it works well for me

This just isn't practical, especially if you live in a city where housing rates have increased much faster than median income.

http://www.bloomberg.com/bw/articles...s-near-useless

[sexybeast]

house was £125k and we pay off £500 a month after putting down a £15k deposit on a joint income of around £50k a year before tax's and without commission included.

[Gamdwelf]

You're mortgage payment should be no larger than 1/4 of your monthly NET income, you're going to need money for upkeep, taxes, insurance etc. That's what I was taught and it works well for me

Also taxes and insurance are required to be part of your payments if you are a first time home buyer in the USA.

OT: bought a house this year it's a bit over double my annual income. Monthly mortgage is about half of income (after taxes) with paying extra on principal. It's a 4 bdrm so I'm renting the other rooms to friends for extra income.

[Deleted]

Current house was £227500, mortgage was about £180k iirc....paying about £800 per month until my next overpayment.

Joint income is around £80k.

[ghotihook]

When I bought my house in 2010, it was 166K I put down 30K so my mortgage was about 133K. I had no problem paying that on a 30yr making 50K a year. It's very important that you have at least 20% of the value to put down so you don't have to pay Mortgage Insurance (PMI).
Before I refinanced, I think I was paying about 1k a month including taxes and insurance

[Kujako]

I have a mortgage to salary ratio of 5 to 1, which is very high. However I bought in an area with a property value doubling rate of 11 years, so I'm kind of doing this rather then a 401k.

[Gamdwelf]

When I bought my house in 2010 was 166K I put down 30K so my mortgage was about 133K. I had no problem paying that on a 30yr making 50K a year. It's very important that you have at least 20% of the value to put down so you don't have to pay Mortgage Insurance (PMI).
Before I refinanced, I think I was paying about 1k a month including taxes and insurance

Lol at telling people to put down 20 when you put down 18%.

[Reeve]

You're mortgage payment should be no larger than 1/4 of your monthly NET income, you're going to need money for upkeep, taxes, insurance etc. That's what I was taught and it works well for me

That seems really impractical for the vast majority of people. I currently earn about $80k. After taxes, that's around 5.2k per month. 25% of that is only $1,300. For me to buy a $250k house in Houston, at 3.8% interest and $10,000 downpayment, my monthly payment would be $1,786 per month. Even if I could put down the $50k that banks want for a fully conventional loan, that's still a monthly payment of $1,509.

In order to have $1,509 be 25% of my monthly net, I'd have to earn around $100k per year. And that's for a pretty small old place.

[ghotihook]

Lol at telling people to put down 20 when you put down 18%.

You're right I put down 33K, thanks for finding the mistake.

[Gamdwelf]

That seems really impractical for the vast majority of people. I currently earn about $80k. After taxes, that's around 5.2k per month. 25% of that is only $1,300. For me to buy a $250k house in Houston, at 3.8% interest and $10,000 downpayment, my monthly payment would be $1,786 per month. Even if I could put down the $50k that banks want for a fully conventional loan, that's still a monthly payment of $1,509.

In order to have $1,509 be 25% of my monthly net, I'd have to earn around $100k per year. And that's for a pretty small old place.

Git more down payment makes the loan way cheaper for you if you can hit 20% or more.

[Nengal]

$253k mortgage. ~$75K pre-tax income. 3.25% rate. Got the house about 6 months ago. Paid 3.5% down.

I knew I'd be a little stressed the first year with percentage of income going to bills, but I graduated college a year before purchasing the home and knew my income would rise fairly quickly.

My mortgage with PMI and the insurance escrow (I have flood and wind/hail included) is about $1550 a month.

[Gamdwelf]

What's up with people's low down payments?

[Kujako]

What's up with people's low down payments?

FHA will cover a loan with as little as 3% down, but you have to pay "mortgage insurance" which can be fairly expensive.

[Lodreh]

Fun little toy just to play with numbers... enjoy.

http://www.bretwhissel.net/amortization/amortize.html

[Gamdwelf]

FHA will cover a loan with as little as 3% down, but you have to pay "mortgage insurance" which can be fairly expensive.

Also banks can usually give you a lower interest rate with more down.

Because I was bringing 20% down I was able to get a rate under 3%.

[Nengal]

What's up with people's low down payments?

My downpayment was low because it's all I could afford after less than a year working and rent is extremely expensive. My mortgage even with insurance included is about the same I was paying for rent on a house a third of the size. Also, I was afraid interest rates would rise and wanted to lock in a low fixed rate asap.

[zenkai]

This just isn't practical, especially if you live in a city where housing rates have increased much faster than median income.

http://www.bloomberg.com/bw/articles...s-near-useless

Then you shouldn't buy something you can't afford