How much of your income is supposed to go to rent? and to a car payment? what is the % supposed to be left after bills?
2007-07-09 14:36:40 · 2 answers · asked by Coma White 5 in Business & Finance ➔ Personal Finance
Housing: not more than a quarter of you income is a good rule.
Car payment: If you have one, it is too high.
Left after bills: the more the better.
2007-07-09 14:42:34 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you're buying a house, most lenders want your mortgage payment to be less than 28% (including principal, interest, escrow, PMI) and your overall monthly payments to be less than 36%. But that may not include non-fixed payments like utilities, cable, cell phone, etc. Just fixed payments like non-housing loan payments, car payment, insurance, alimony, child support, credit card payments, etc.
This calculator might give you some more idea what's included...
http://mortgage.bizcalcs.com/calculator....
I would think the same guidelines would be good for renters too. At least if you can live within those limits, you'll be ready to buy a home.
Hope this is close to what you're looking for.
2007-07-09 23:12:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋