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12-11-2012 at 11:16 AM
jessica290
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jessica290 is not online. Last active: 05-24-2013, 2:39 PMNewbie

Take home pay

Hi- When someone says that your mortgage payment should be 25-30% of your take home pay...does that mean you monthly pay? And does that mean between you and your spouse? Can someone give me example with numbers? If you wanna use mine you can....My monthly take home is 2260 and hubby's can average around 2400
 
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12-11-2012 at 11:31 AM
brij2006
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brij2006 is not online. Last active: 05-24-2013, 2:17 PMBronze

It would be the amount your paycheck is written to you for, after taxes, insurance, 401k, social security, etc is taken out. So your combined monthly take home pay is $4,660.

If your hubby's income fluctuates, I would recommend to base your bills on the low end of his take home. Just in case you have 3-4 months of the lower pay, then it hopefully won't affect your budget.

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12-11-2012 at 12:05 PM
jessica290
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jessica290 is not online. Last active: 05-24-2013, 2:39 PMNewbie
So if our montly take home pay is 4660 it would be : 4660 X.25= $1165 4660 X.30=$ 1398 Then that is what our mortgage should be?
 
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12-11-2012 at 12:26 PM
forcuatro
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forcuatro is not online. Last active: 05-24-2013, 10:22 PMNewbie

jessica290:
So if our montly take home pay is 4660 it would be : 4660 X.25= $1165 4660 X.30=$ 1398 Then that is what our mortgage should be?

 

Yes, sort of. Somewhere between $1165 and $1398 should be comfortable.  However this is not just the loan payment (principle and interest) but is the whole payment (Principle, interest, taxes, and insurance.  Many people feel that you should include your utility payments in the 30% number as well.  You can certainly spend less than this, but it is not recommended to spend more. 
 
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12-11-2012 at 12:31 PM
jessica290
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jessica290 is not online. Last active: 05-24-2013, 2:39 PMNewbie
Ok, everything is rolled into 1 payment for us which is $1273 total per month...but that doesn't include our condo fee of $171 per month...so are kinda pushing it...this sux!! We bought the condo for $158,000 about 5 yrs ago, still owe about $145,000....we were wanting to buy a house for around $220,000 or less but looks like there is no way at this rate!! I feel like my whole paycheck goes to bills...we still have some leftover to do whatever with...but they are the majority of paycheck...we really need to cut back on some things...cable/phone/internet just bumped up to $180 with Comast triple play....what a ripoff that is...we are going to get that lowered by switching up the services...and our combined cell phone is $140....also a rip off.....I hate this....
 
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12-11-2012 at 1:15 PM
polooo26
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You already got your answer so I won't repeat. Just remember if you get a bigger house all your other expenses with a house will increase proportionately. Utilities, maintenance, things to put in it. Plus your neighbors will have more money too. And you want to make sure you keep up the Jones's.

Also, since you're already pushing your limit you probably don't want to take on more. Think very carefully before doing something where you rely on two incomes.
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12-16-2012 at 11:41 AM
tilsonc
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tilsonc is not online. Last active: 05-24-2013, 10:23 PMNewbie

jessica290:
Ok, everything is rolled into 1 payment for us which is $1273 total per month...but that doesn't include our condo fee of $171 per month...so are kinda pushing it...this sux!! We bought the condo for $158,000 about 5 yrs ago, still owe about $145,000....we were wanting to buy a house for around $220,000 or less but looks like there is no way at this rate!! I feel like my whole paycheck goes to bills...we still have some leftover to do whatever with...but they are the majority of paycheck...we really need to cut back on some things...cable/phone/internet just bumped up to $180 with Comast triple play....what a ripoff that is...we are going to get that lowered by switching up the services...and our combined cell phone is $140....also a rip off.....I hate this....

You need to re-fi if you still owe $145k in 5 years. I would go to a 15 year fixed. I would also take a look at your other bills (car payments, student loans, ect) and try to get them paid off. I would read/listen to Dave Ramsey. His plan works.

 
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