What percentage of your pre-tax income goes towards your mortgage?

[Dr. Zaus]

"broceritops" Hhehehehe... oh... i'm actually laughing, awesome.

ave "peace of mind" all you want, even if your $500k home is completely paid off, if it's only worth $200k I would DEFINITELY be losing sleep about how much money was lost.

Argument:

Losing your job and moving across the country and being able to sell your 500k house at 200k is >> being forced into a foreclosure, short sale, or selling that portfolio at market bottom.

That leaves me $$ so I can pay $6K for my HSA, $7400 for my health insurance, $6200 for the kid's school, $7200 for his college fund.....I'd be in deep doo if I had debt.

Behavior, I agree, trumps numbers.

 

[Engineer]

edit: And I still don't get your logic... Have "peace of mind" all you want, even if your $500k home is completely paid off, if it's only worth $200k I would DEFINITELY be losing sleep about how much money was lost.

My home value dropped very little if any during the great recession. My investments dropped 64% from peak to bottom. Of course, I doubled down and invested twice as much into the market after a certain point down and all the way back up.

But paying my house off was different 'at the time'. I had a 7% mortgage. That's a guaranteed 7% stuck in my pocket (again, at that time - before everything including mortgage rates collapsed).

In other words, everyeone's circumstances are different, especially in different parts of the country.

 

[BurnItDwn]

Now that I finally paid off my 2nd mortgage, and I Have just one normal mortgage, I'm at a pretty comfortable level. < 15% (If I include property tax, then I am just over 15%)

 

[BoberFett]

I rent, but it's about 14-15% of gross. It's almost a third of net though. Taxes and child support are a bitch.

 

[PricklyPete]

Not bad but November - March too cold for the wifey and questionable MMJ laws. If the wife could deal with cold I'd move to CO so fast.

It's terribly cold here. Make sure your CA neighbors know that too.

 

[highland145]

It's terribly cold here. Make sure your CA neighbors know that too.

 

[xeemzor]

We should ship all of them to Florida. I hear it's warm there

That way we can have all the crazy in one place.