June 3, 201511 yr General rule of thumb for buying a house is 2/3 times your annual salary, so I wonder what the general rule for buying a car is? Are you saying 66% (2/3) or 2-3 times your annual salary?
June 3, 201511 yr A loaded new Truck used to cost $25,000...now $45,000 to $60,000 A really nice home used to be able to be found for $150,000...now $250,000+ Agreed. Another complication is people going for those $50,000 trucks and $250,000 homes way before they should. The ones who can truly afford those can still pay for them in 4 years and 20 to 30 years.
June 3, 201511 yr Your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). So, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866.
June 3, 201511 yr Author Wife and I did a 72 month one for her new car back in July of 2013. Did it to keep the required payment as low as possible. Should be paid off in less than a year from now. What was your APR on the loan?
June 3, 201511 yr What was your APR on the loan? Don't remember off hand, but it was something stupid low as we were able to get it through the credit union through her step-dad's work.
June 3, 201511 yr Your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). So, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. That's a pretty good portion of that income. I'd personally go a little lower.
June 3, 201511 yr Your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). So, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. Is the 28% figure your rule of thumb regardless of the loan's length?
June 3, 201511 yr That's a pretty good portion of that income. I'd personally go a little lower. Agreed. Just roughly calculated ours....~12.5%.
June 3, 201511 yr Told my dad I'd pay him back for my first car, it's been a decade or three and still haven't. Hope my kids don't follow the same trend.
June 3, 201511 yr Your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). So, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. Out of your mind, thats way to much. Our calculates to 9.5% of gross and I think thats too high.
June 3, 201511 yr Is the 28% figure your rule of thumb regardless of the loan's length? It's been a few years but I've heard total loan debt should run 35% of income . So 28% for the house would leave you with only 7% for cars.
June 3, 201511 yr Out of your mind, thats way to much. Our calculates to 9.5% of gross and I think thats too high. I agree, and think that is higher than it should be. Just what I've read. Mine calculates to 4.5%
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