How Much Should You Spend On a Mortgage?
The most recent article from The Washington Post suggest you should keep it to around 28% of your gross monthly income. That is pretty high in my opinion. If you make $100,000 per year that’s $8,333.33 per month and 28% of that is a payment of $2,333.33 per month. I think that is pretty high.
So what do I think your mortgage payment should be? Well of course the answer is it depends. It depends on your other debts. If you are looking for a quick and fast way to estimate I think it should be around 2 to 3 times your income. I always like to go with the lower of the 2 as you do not want to be house rich and cash poor because really how many hours do you spend per day awake in your house?