Home article What % of My Monthly Income Should Go Towards a House Payment?

What % of My Monthly Income Should Go Towards a House Payment?

0
0
What % of My Monthly Income Should Go Towards a House Payment?

Q: You recommend that no more than 25% of your monthly income go toward a house payment. Does this figure include taxes and insurance too?

 

Dave: Yes, it does. Your housing payment should not exceed 25% of your monthly take-home pay on a 15-year, fixed-rate mortgage.

When it comes to buying a house, the goal is not to live in the Taj Mahal or have something so expensive you end up being house-poor. When buying a home, especially for first-time homebuyers, you should look for something nice — in a decent area — that you can get paid off as quickly as possible.

It’s really not a big deal if you cheat a couple of percentage points one way or the other. But 25 percent is a good rule of thumb to ensure you’ll still have money left over to live on, save and invest!

Dave Ramsey Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations and The Dave Ramsey Channel on iHeart Radio. Follow Ramsey on Twitter at @DaveRamsey and on the web at www.daveramsey.com.
Array ( [homeUrl] => https://www.swadvantage.com ) eyJpZCI6bnVsbCwidXNlcm5hbWUiOm51bGwsImVtYWlsIjpudWxsLCJhdmF0YXIiOm51bGx91568541103f9cfd562bf4bbdd053b53c454f5d6088f2f295c4