Hello!

For the real estate moguls and personal finance gurus, how much % should your mortgage (including HOA, taxes and average utilities expenses) be of your total household compensation?

Let’s assume we have 2 kids to take care as well and 1 car payment of less than $500 including insurance per month.

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No more than 28% of your gross income ie if you make $100k a year you should spend no more than $28k a year on your house expenses or ~$2300 a month. When you get a mortgage they estimate your HOA, taxes etc and give you an est total monthly payment. For me, my mortgage alone is about $2100 a month but it comes out to $2850 after taxes and HOA. Your realtor can calc exactly what the number would be for your income and liabilities for free.

likesmart

As low as possible in the best school district you can afford over the long haul. Those are diametrically opposed which is why no personal finance rule makes sense here since it's a values based decision with your spouse. In general the lenders don't want to see above 40% pre Tax or they start considering you high risk with unfavorable terms

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