Faith and Finance

Question by Opea51: What is your monthly mortgage payment and your household income?
Getting ready to buy a house and just curious what people find comfortable. What is your mortgage payment (including taxes and insurance), and your household income, and are you comfortable with your mortgage?

Thanks!

Best answer:

Answer by RetiredDebtFree
To keep from getting in over your head and being financially stressed, your monthly total mortgage payment (PITI) should not exceed 25% of your take-home pay.

Lenders will tell you 30% or more, but that school of thought leads to families struggling with the reality of home ownership and all the other expenses.

Being a home owner is expensive: regular maintenance (air filters, cleaning products, light bulbs, etc.), major repairs like heat & air, roofs, window replacement, painting), yard upkeep, appliance repair and replacement, plumbing emergencies, garage door repair, furnishings and replacing old furniture from time to time, insect and termite control, fence replacement, and the list goes on and on.

Don’t buy the biggest place your lender will allow. Being in debt for your house will hamper you ability to save for future major financial obligations and wishes like vacations, family, retirement, medical expenses, and the occasional toy or trinket.

What do you think? Answer below!

Western Asset Mortgage Defined Opportunity Fund Inc. as of September 30, 2011
Investment Strategy: The Fund seeks to achieve its investment objectives by investing primarily in a diverse portfolio of mortgage-backed securities ("MBS") consisting primarily of non-agency residential mortgage-backed securities ("RMBS") and …
Read more on MarketWatch (press release)