Is Spending 40% of Our Income on a Mortgage Too Much?

Reported 2 days ago

A household earning $200,000 a year is considering buying a $600,000 home, which would require allocating 40% of their take-home pay for mortgage costs, not including additional expenses like utilities and repairs. Experts generally recommend keeping housing costs under 35% of income, indicating that such a large commitment may lead to financial strain and limit lifestyle choices. Before proceeding, it's advised to assess long-term affordability, consider saving for a larger down payment, or opt for a less expensive home.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis