What is the percentage a month that one

[missahlissah]

should spend on a house? (Example: Mortgage payment)? I had thought I had heard that you shouldn't go over a certain percent. Is this true?

Thank you for your time!!
I don't mean mortgage rates...

I mean: What is the MOST you should spend a month in mortgage? (25%, 10%, 30% of your monthly income towards your rent or your mortgage...)

Thanks!

[~Shae~]

it will depend on your credit and other factors... like the amount of the loan or the type of property (commercial or residential or mixed)... best bet is to shop around... I work for a mortgage broker... the rates are in the 6% range right now and are pretty good...

[Ed C]

Most rules of thumb say that your overall debt payments should be no more than between 28-34% of your gross income. That includes car payments, student loans, gambling debts, loan shark payments etc.

But you really need to look at your own situation. If you like to spend money on vacations, eating out, buying dresses for your dog, tricking out your new VDub, and getting diamond Grillz, you might not want to crimp your style with an expensive house payment. Remember you need to bling your pad with a hot tub, hidden passageways, and a pool table too.

Figure out what your monthly budget currently is, then see what you have left for a house payment. It could be that what you are paying in rent is enough to pay the monthly mortgage.

[sherkhaan09]

if you are in europe, north america or australia, than your total expenditure on house should not exceed 30% to 35% of your monthly take, that is to say if you are paying 25% as rent than the mortgage repayment should be in the region of 10%, on the other hand if you are occupying the house on which you are paying mortgage than the mortgage amount can be higher at 30% so that you can liqudate your liability faster. in sum restrict the overall outgo on all house related payments to 30% or so. on the other hand if you are in rest of the world(other than from countries above) than the overall outgo be restricted to 25% level. wish you luck in your house venture.

[Madge B]

i'm not sure, but i think this site has the answer to this particular question. they've got lots of stuff about this anyway.

[ask927]

Typical Mortgage agencies limit you to about 38% of your gross income for all your debt including your mortgage, 28% for the mortgage (plus taxes) alone, so a little over a quarter of your income...
However like the other person who answered this question said, it all depends on the way you choose to live. You can qualify for a mortgage with usually 50% of your gross income being used, sometimes even more if you have equity in the home and money in the bank... If owning this home is what you are willing to work for and sacrifice a few other things, than by all means... but going over 50% of your income for your mortgage and ALL your other debt is not advisable.