If my monthly income is 10,000 what percent of that should be dedicated to a house? Is there a specific percentage?
2006-12-13 14:57:59 · 11 answers · asked by doctorslapnut 2 in Business & Finance ➔ Renting & Real Estate
Is the 30 Percent BEFORE or AFTER taxes?
2006-12-13 15:01:08 · update #1
The mortgage companies deal with what they call DTI or debt to income. The look at 33% front end ratio and 45% back end ratio for most loans. The front end ratio is 33% of your total Gross monthly income and the Back end ratio is 45% of your total gross monthly income minus your monthly expenses (of which show up on your credit report) Which ever is the lower of the two, front end or back end, this is what your monthly budget should not exceed. If you have exceptional credit, they can push these ratios a little higher. This would be done on a case by case basis.
2006-12-13 15:27:28 · answer #1 · answered by D 2 · 0⤊ 0⤋
For the 6-figure earning doctor genius, gross income means before taxes.
D's answer is pretty right on. 33% max for housing, 45% max for all debt combined is the high end of what you should look to spend.
But if you have really strong credit and a good chunk of cash reserves, that can often be expanded, sometimes as high as 65%. Which means you'll pay all your money to debt after taxes. Unwise unless it's a temporary situation, like you haven't sold your existing home yet but need to close on the new one, and pay it for a couple months.
2006-12-13 15:40:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well the % goes as follows. Most banks will allow your total expenses to equal 50-55% of your income. That % includes house payment, taxes, insurance, car, credit cards and any additional payments that may be posted on your credit report. There are some banks that will allow 60% depending on your particular situation. If you would like also there are some calculators at http://www.justgetaloan.net that you may find helpful. Also you can get a fast free pre-qualification for low rates and great loan programs through our proffered brokers. Additionally you can register to win a FREE MORTGAGE PAYMENT, NO GIMMICK! Also feel free to contact me at 866 530 7300 ext 7305 or by email at jfreeman@justgetaloan.net
2006-12-14 10:16:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
ideally it should be about 1/4 of your monthly income or 2500. You can probably get by with it being up to 1/3 or 3333.
2006-12-13 14:59:40 · answer #4 · answered by strmch8sr 3 · 0⤊ 0⤋
30% is the rule of thumb. So in your case that's $3000.
2006-12-13 15:00:09 · answer #5 · answered by Lauren 5 · 0⤊ 0⤋
25%
2006-12-13 14:59:16 · answer #6 · answered by ? 7 · 0⤊ 0⤋
they say your rent/mortgage/housing costs shouldn't exceed a third of your total gross income....that rarely happens...apparently you wanted to show off your income for whatever reason-
2006-12-13 15:01:02 · answer #7 · answered by BuRn Di WiSdOm WeEd 4 · 0⤊ 0⤋
my teacher spoke about this it should be between 20-40% if you can do that and pay your bills and have money for fun thn you're good.
2006-12-13 15:00:13 · answer #8 · answered by reggaesoul 2 · 0⤊ 0⤋
Your mortgage payments should not be more than 30% of your gross pay.
2006-12-13 14:59:10 · answer #9 · answered by r_a_i_n_m_a_n_5_9 3 · 0⤊ 1⤋
1/3rd 3,333.33
2006-12-13 14:59:55 · answer #10 · answered by Anonymous · 0⤊ 0⤋