Anyone out there spending 50% + of their take home income on their mortgage?
My wife and I will likely be in this scenario if we decide to buy a home. I’m curious how it’s going for people out there that have decided to go for a financial stretch like this.
Edit :
-Take home for us is 11k / mo
I would say if you are going to do this, have a much larger emergency fund than 3 months, especially with two kids like at least 6 months.
My emergency fund is me on my roof, shirtless, challenging AMEX to come take what’s rightfully theirs as I throw assorted citrus at them which grows too often in my backyard
Honestly depends on a lot of factors. In very high cost of living cities like SD, that percentage is not unusual but important to consider what you are LEFT with after all housing expenses, and if you are also doing well with contributing toward your retirement and/or already have a healthy emergency fund. If you are a higher earning household, you may be able to handle that ratio.
When we first bought a house 4.5 years ago it was just about 50% BUT I had a healthy emergency fund and was contributing a lot toward retirement and had enough after to still save a little.
Haha I’m spending more than 50% of my income on my house. But I’m happy. Love SD. Born and raised. At least my mortgage will never go up like some peoples rent does.
Same, just bought in SD and am spending like 60% between mortgage, hoa, and taxes. At least the place is my own and don’t have to worry about rent hikes. I have an extra room I figure i can rent out if I get desperate.