How much of your income should be spent on a mortgage?

+1 vote
asked Mar 2, 2018 in Real Estate - Renting by Zty (250 points)
How much of your income should be spent on a mortgage?

1 Answer

0 votes
answered Mar 4, 2018 by Gracy (132,100 points)
You should never spend more than 28% of your income on housing expenses since you need some income leftover to pay for other things such as food, utilities and other expenses.

Housing costs don't just include the mortgage you also have the home owners insurance, property taxes and if you live in a HOA area you'll also have those fees to pay.

When deciding on a home decide on one that you can reasonably afford the monthly mortgage payments for since you don't want to be house poor and have most of your income going towards a mortgage payment.

If possible you should try to send more money in on the mortgage payments each month to get the mortgage paid off sooner since the longer you drag out the mortgage the more interest you'll pay on the mortgage to the bank.

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