General Discussion

SheilaT

(23,156 posts)

25. I'm old enough that I remember when it was about a quarter of your income.

Wed Apr 24, 2013, 07:28 PM

Apr 2013

In the 1970's mortgage money got very tight and mortgage interest rates skyrocketed. That's also when wives entered the labor market in very large numbers. Around then the rule of thumb became about a third.

I'm currently paying about a third of my income for my mortgage. I keep on thinking I should refinance.

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What's your housing cost as a percentage of your income? As a teen, what were told it should be? [View all] Bucky Apr 2013 OP

I was told it should be a fourth like your dad, but it was more like a third for a dump Cleita Apr 2013 #1

One quarter al_liberal Apr 2013 #2

Then I rent to express my patriotism. Bucky Apr 2013 #3

That's the joke. al_liberal Apr 2013 #10

Of course you don't get a dollar for dollar trade off. upaloopa Apr 2013 #19

It depends where you live and when you bought. My virgogal Apr 2013 #35

I'd always heard 2.5x income for a house and the the last few years 3x. tammywammy Apr 2013 #14

I remember being told that a third of your income was about right. Brickbat Apr 2013 #4

and how does that stack up to your actual costs? Bucky Apr 2013 #5

A month's rent should not exceed a week's gross pay rocktivity Apr 2013 #6

How long ago did you hear this advice? Bucky Apr 2013 #8

I was a preteen quite a few decades ago, LOL rocktivity Apr 2013 #13

We need to de-emphasize ownership and promote more community-based solutions BanTheGOP Apr 2013 #7

With all these types of ideas I ask who pays for it upaloopa Apr 2013 #12

Who pays billions to military contractors? leftstreet Apr 2013 #45

That's a cop out but just as unthought out upaloopa Apr 2013 #64

Not a fan of statist solutions myself. Bucky Apr 2013 #15

Government in control of all property? SheilaT Apr 2013 #24

Sounds nice, but... FreeJoe Apr 2013 #38

What? dem in texas Apr 2013 #55

Wife and I with combined incomes pay 17% upaloopa Apr 2013 #9

in Los Angeles, most pay much more than 25% of income on housing Liberal_in_LA Apr 2013 #11

I was really kinda hoping for some personal shares. Bucky Apr 2013 #17

ours is about 40%. DCBob Apr 2013 #16

Have costs gone up? FreeJoe Apr 2013 #40

Our house payment is 16% of our income. ohheckyeah Apr 2013 #18

I pay just under 25% on my mortgage, kiva Apr 2013 #20

Rent + Electricity + Water/Sewer = Roughly 38% Buns_of_Fire Apr 2013 #21

About 10~20%, but our house is paid for and our income is Social Security. 1-Old-Man Apr 2013 #22

I was told a third and it has been as much as about 55% but is currently about to 1/3 again TheKentuckian Apr 2013 #23

I'm old enough that I remember when it was about a quarter of your income. SheilaT Apr 2013 #25

OK ananda Apr 2013 #26

28%, but I live in what most people call a hovel. Jamastiene Apr 2013 #27

Zero Shrek Apr 2013 #28

Looks like 61.666% for just a house payment. ileus Apr 2013 #29

We pay 14%. MissB Apr 2013 #30

Mine was 60%, until I refinanced bhikkhu Apr 2013 #31

Ours is 30%, but... cyberswede Apr 2013 #32

About 17% of pre-tax income, about 25% of post-tax income. nt geek tragedy Apr 2013 #33

I'm willing to spend 5x gross income on the home price taught_me_patience Apr 2013 #34

The last 5-6 years, when I have been making more than before.. about 20%-22%. pangaia Apr 2013 #36

Define Housing Costs and Income FreeJoe Apr 2013 #37

25% and 25% X_Digger Apr 2013 #39

Very little spinbaby Apr 2013 #41

Mine is less than 10% ....... oldhippie Apr 2013 #42

not bad for an "oldhippie" Lex Apr 2013 #52

16.8% of gross income if you include utilities, 11.7% without utilities. nt kelly1mm Apr 2013 #43

About 7%. Recommendation was no more than 25% n/t sammytko Apr 2013 #44

Back in the mid-70's I was told about one third... Adsos Letter Apr 2013 #46

Mortgage only is around 20% Earth_First Apr 2013 #47

15% distantearlywarning Apr 2013 #48

~20%. Igel Apr 2013 #49

27.78% of monthly income. I just figured it out to respond to your OP. stevenleser Apr 2013 #50

paying 75%, told 33% Cobalt Violet Apr 2013 #51

Under 10% and I am in Los Angeles. Was told 25% when I was young. Live and Learn Apr 2013 #53

ALmost 50% even. JaneyVee Apr 2013 #54

from 10% to 20% depending on how much work is available for the year juxtaposed Apr 2013 #56

57% unrepentant progress Apr 2013 #57

When I sold real estate in the 80s it was 33% nt Doremus Apr 2013 #58

Aye, that's what I learned too unrepentant progress Apr 2013 #59

15% Chellee Apr 2013 #60

Rent plus utilities - Hell Hath No Fury Apr 2013 #61

You mean an unbuilt two-bedroom condo "with bonus room" shouldn't cost "from 1160"? Heywood J Apr 2013 #62

50%. LWolf Apr 2013 #63

I remember being told no more than 30% laundry_queen Apr 2013 #65