Percentage of pay on home
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0% Never had a mortgage as I've always paid cash. - But, I'm actually studying this at the moment as I'm writing some software for lowering residential mortgage rates. - What's really interesting is that a 1% increase in interest rates can change a 28% figure like yours into a 35% figure. (many assumptions). - I suggest instead that you look at the ratio of Interest paid to net Income. As paying the capital part of a mortgage is just asset swapping for home equity. - Its typical nowdays in NZ for Interest to be about 50% of a couples NET-PAY on there first home. This is bad IMHO. Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
ColinDavies wrote: What's really interesting is that a 1% increase in interest rates can change a 28% figure like yours into a 35% figure. (many assumptions). It isn't a 1% increase. The interest on my mortgage now is 3.59% The BoE base rate is now 4.5% When the discount period on my mortgage ends, assuming the BoE rate stays the same [which it won't as it is expected to rise more], I will be paying 5.5%, which is nearer a 2% jump in interest (or £1600 [$2800US] per year) One of the really crappy things about my mortgage is that the interest for each calendar year is calculated up front, in January. So if I pay off a lump in February it makes no difference until Dec 31 when they recalculate the interest, so I might as well keep that money in a savings account until late December.
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
I am at 10%, however this is a straight loan. I.E. I pay the taxes and insurance directly. I also have the college bills as Marc states. I do not mind getting old. It beats all the other options that can think of.
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
Just barely under 20%, 19 years left on the mortgage but we'll probably pay it off in 12-15. "President Bush has promised he's going to establish elections in Iraq, he's going to rebuild the infrastructure and he's going to create jobs. And he said if it works there, he'll try it here." David Letterman
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ColinDavies wrote: What's really interesting is that a 1% increase in interest rates can change a 28% figure like yours into a 35% figure. (many assumptions). It isn't a 1% increase. The interest on my mortgage now is 3.59% The BoE base rate is now 4.5% When the discount period on my mortgage ends, assuming the BoE rate stays the same [which it won't as it is expected to rise more], I will be paying 5.5%, which is nearer a 2% jump in interest (or £1600 [$2800US] per year) One of the really crappy things about my mortgage is that the interest for each calendar year is calculated up front, in January. So if I pay off a lump in February it makes no difference until Dec 31 when they recalculate the interest, so I might as well keep that money in a savings account until late December.
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
Colin Angus Mackay wrote: One of the really crappy things about my mortgage is that the interest for each calendar year is calculated up front, in January. That is flamin' daft. They must be using a real legacy system to have that happening these days. Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
23% Here! Yes, I program in VB, but only to feed my addiction to a warm place to sleep and food to eat!
Visit my Code Project blog (Mobile Audio project)[^]
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0% Never had a mortgage as I've always paid cash. - But, I'm actually studying this at the moment as I'm writing some software for lowering residential mortgage rates. - What's really interesting is that a 1% increase in interest rates can change a 28% figure like yours into a 35% figure. (many assumptions). - I suggest instead that you look at the ratio of Interest paid to net Income. As paying the capital part of a mortgage is just asset swapping for home equity. - Its typical nowdays in NZ for Interest to be about 50% of a couples NET-PAY on there first home. This is bad IMHO. Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
ColinDavies wrote: 0% Never had a mortgage as I've always paid cash. So you paid cash outright for a home or apartment? Yes, I program in VB, but only to feed my addiction to a warm place to sleep and food to eat!
Visit my Code Project blog (Mobile Audio project)[^]
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ColinDavies wrote: 0% Never had a mortgage as I've always paid cash. So you paid cash outright for a home or apartment? Yes, I program in VB, but only to feed my addiction to a warm place to sleep and food to eat!
Visit my Code Project blog (Mobile Audio project)[^]
Wackatronic wrote: So you paid cash outright for a home or apartment? Correct, I have had several and have always paid for them without a mortgage. (remember programmers use to make big money once) :-) Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
I am currently paying 50% of my after-tax pay on my car loan. I am not paying for a house as I don't own one yet. Nish
Now with my own blog - void Nish(char* szBlog); My MVP tips, tricks and essays web site - www.voidnish.com
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
22% for rent BW The Biggest Loser
"People look so snooty, take pills make them moody
Automatic bazootie, zero to tutti frutti"
-Hollywood Freaks -
I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
62% if you only count my paycheck. 34% if you add in my wife's. Rent is very expensive down here. X|
Jon Sagara If you've ever watched 6-year-olds playing soccer, that's what the mainstream media is like. -- Jon Stewart
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
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33% :omg: :(( But that's LA for you... stuff's expensive --Mike-- Personal stuff:: Ericahist | Homepage Shareware stuff:: 1ClickPicGrabber | RightClick-Encrypt CP stuff:: CP SearchBar v2.0.2 | C++ Forum FAQ ----
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I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
Mine is about 26% if I make minimum payments, but it's about 66% based on the payments I make. Given how cheap housing is where I live, I can only assume you all make a ton more than I do. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder
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0% Never had a mortgage as I've always paid cash. - But, I'm actually studying this at the moment as I'm writing some software for lowering residential mortgage rates. - What's really interesting is that a 1% increase in interest rates can change a 28% figure like yours into a 35% figure. (many assumptions). - I suggest instead that you look at the ratio of Interest paid to net Income. As paying the capital part of a mortgage is just asset swapping for home equity. - Its typical nowdays in NZ for Interest to be about 50% of a couples NET-PAY on there first home. This is bad IMHO. Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
A lot of us in the States have fixed-rate mortgages, so the interest rate stays the same through the life of the loan. It's bad if the market interest rate goes down, but it does make for a consistent payment (much easier to budget for that, IMHO.) My goal is after this house is payed off (12 more years, sooner if I get nice raises/bonuses :) ) is to be able to pay cash for any future home. We'll see how that goes though... easily said now when I'm single and no kids so I have no need/plans to move into anything bigger. "Fish and guests stink in three days." - Benjamin Franlkin
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I am currently paying 50% of my after-tax pay on my car loan. I am not paying for a house as I don't own one yet. Nish
Now with my own blog - void Nish(char* szBlog); My MVP tips, tricks and essays web site - www.voidnish.com
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Nishant S wrote: I am currently paying 50% of my after-tax pay on my car loan. :omg: I hope that's one NICE car... "Fish and guests stink in three days." - Benjamin Franlkin
Navin wrote: I hope that's one NICE car... My new car [from my blog][^] Nish
Now with my own blog - void Nish(char* szBlog); My MVP tips, tricks and essays web site - www.voidnish.com
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I was paying about the same in rent as I am in mortgage and would advise people to buy not rent whenever possible. Elaine :rose: The tigress is here :-D
Oh, I can't wait for the day to buy. If only I wasn't so stupid in a former life, and made a hobby of collecting debt. :doh: I am close though, and am getting antsy to start seriously looking for a new place to hang my hat.:) BW The Biggest Loser
"People look so snooty, take pills make them moody
Automatic bazootie, zero to tutti frutti"
-Hollywood Freaks -
I'm just curious how much everyone is paying for their mortgage or rent as a percentage of their take-home (net) income. I'm paying 28% of my net pay on my mortgage. How does that stack up against you?
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog
33% for me - also in LA...but I am diverting 20% of my pay into the company 401K (retirement) plan...if you don't count that it would be about 25%...I did buy the house in 1980 and have re-financed 3 times already to get better rates. Originally the loan was 12% interest :omg: (which in 1980 was a very good rate) Steve
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Colin Angus Mackay wrote: One of the really crappy things about my mortgage is that the interest for each calendar year is calculated up front, in January. That is flamin' daft. They must be using a real legacy system to have that happening these days. Regardz Colin J Davies
*** WARNING *
This could be addictive
**The minion's version of "Catch :bob: "It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox
ColinDavies wrote: They must be using a real legacy system to have that happening these days No, it is quite a modern bank. They just announced that they are closing a number of branches because people don't use them as they are all on-line. With this calculation the bank can offer a low interest rate knowing that any customers who pay a little bit extra each month are not making the dent until the following year so it plays in to the banks favour. If all you ever do is pay the standard amount each month it makes no difference. But the irritation for me will be in Oct2005 when my discount period is over and I'm looking for a new mortage. If I swap mortgage products before December then I am losing money, if I keep the mortgage until then I am going to have to pay the higher monthly payments for Oct, Nov & Dec because they will have calculated factored in that extra interest 9 months earlier. However, lesson learned :- Pay closer attention to how the interest is calculated before signing up.
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The Second EuroCPian Event will be in Brussels on the 4th of September Can't manage to P/Invoke that Win32 API in .NET? Why not do interop the wiki way! My Blog