Quote:
Originally Posted by westopher
Wondering what people in here are spending as a portion of take home income on mortgages right now.
I know what we can qualify for, and it's not a number I'm comfortable with, but curious what real world non 500k income model dating RS members are at?
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Our mortgage costs are about 33% of our take-home pay. We have a detached house in the 'burbs and we are on a variable mortgage. We aren't making extra payments as we're just trying to enjoy life (we are out of the daycare years) and fix up this mid-90s house. We went through the pain when we had a small townhouse and put 2 kids through daycare.
Our total costs including utilities, taxes, and a reasonable amount set aside for general maintenance are about 40-43%.
My wife changed jobs last year and bumped her compensation by 25%. I changed industries a couple of years ago and bumped up my compensation by a similar amount. Plus, last year, we finished the daycare years, so that's how we've weathered rising interest rates and inflation.
When you make these decisions, you go through the spreadsheet blues. It can be incredibly depressing, but in the end, you make the necessary adjustments. Or, you take a chance and try to make more money. My wife works very hard in her new role, but it's opened up a lot of opportunities for her as well.
In the end, we'll all end up dead anyway. The window for these types of decisions is actually quite short. If there's something you want, go for it.