How Much Should Your Mortgage Payment Be? How Much Should I Spend on My Mortgage | First Time Buyer

[@hollee1464]

I would love to know the statistics of how many first time SINGLE income home buyers (making less than 6 figures) of the past few years are actually paying “no more than 35% of income” to mortgage bc it just seems so unrealistic to me unless you can settle for living in a 1950s shoebox.

[@melissayee9704]

Agree!!! My mortgage is 48% of my Gross🤣🤣....Guess am house poor with alot of space instead of living in a shoe box renting for 50% of my gross pay!!..Life is definately not Burger King, "Can't have it your way!!"

[@ShaheedahHill]

It was 31% in 2021, likely higher now. I am sure Single parents are paying more of their income on a mortgage payment. This video is a guideline and will not be exact for everyone but as a single parent you have to be even more conservative about monthly expenses. If you do have a home expenses that are higher, you should make an effort to increase your income to give yourself some breathing room. I did this video with my sister, a single mom do discuss those challenges - kzbin.info/www/bejne/pXmreoytfcd-d9k

[@Homentertainement2]

It’s not meant to be realistic just a guide for good practices and principals. I say it’s not realistic because the average person isn’t taught about finances properly and the average person is taught to be consumers and live beyond their means.. Also these are general rules and not tailored to everyone’s specific situation. The goal is to have money left over every month to save and invest to become wealth and not be broke our entire lives..

[@lovelyladyP31]

yeah, we are a family of 4 with one income and it is rough out there

[@shythoro]

Yes agreed. But I think you were asking about stats to being a single home buyer or single parent? I'm looking at the math now as a single home buyer

[@Sunshine4]

My fear is being house poor. I don’t want to leave the market but it’s kicking me out.

[@Homentertainement2]

Don’t be discouraged. Your time will be the perfect time, don’t rush it

[@923crono]

I was house poor for at least 2 years. It was rough but worth it long term after refinancing. Debt all gone and have a rainy day savings. Much more preferable than renting

[@rodharris8598]

Hence the problem. Housing is not affordable for most buying or renting. Most decent dwellings range from about $1,700-$2,400 per month renting. The very limited number of homes for sale, force you to continue renting at higher rates.

[@923crono]

Yep. I pay 1,900 but take in around 4500 a month. It can be tough but it's possible to make it work out

[@jasonb.3874]

move away from the big city

[@TheeRighteousOnee]

I'm single and my mortgage is currently about 50% of my monthly income but I have about $1300 a month left over after my mortgage payment and utilities. It's a lot, but I got the home I wanted. I can always make more money at some point in the future and I still have a decent amount saved up.

[@memyselfandi9106]

PEOPLE you only live once. Live in the house you want. Buy what you like. I'd rather sit down at 100y/o and say I tried it and loved it. Than to say I wish I would have. Coming from the words of a 100 year old man. 🙂

[@monicagutierrez2458]

Thank you for sharing this ,we're in the process of buying our first and is been very scary and confusing ,thanks to this channel n reading the comments I have been able to learn and just reading this comment make me feel more at ease is been years since I have said " I wish I would of ", so at least I tried this yr. and remember learning from this experience.

[@memyselfandi9106]

@@monicagutierrez2458 😊

[@johnnettarodgers9205]

My husband and I live in Las Vegas. We have successfully saved well. What we did first was paid off both vehicles. We have all of our bills arranged to be paid at the end of the month. Using a joint account, we bank all of our paychecks, and have the total amount due for all bills already set aside in our checking account. Everything else goes to savings. This has allowed us to save for a hefty down payment so far. We are going to purchase in a few months. Though the prices are dropping in the Las Vegas area, the interest rates are still a bit high. The payments will eventually balance out in the end especially if we can refinance in the future. But, we look at it as an investment that will always appreciate and not depreciate regardless of how the market is. And the real key is to always keep God in your plans first before make any hasty decisions. Thank you

[@ShaheedahHill]

Thank you for sharing and watching.

[@ElleBrOw]

All I read was “joint account” 👀

[@Sherraysmiles]

I live here in Las Vegas too I don't see the housing market dropping... I would love to buy a home myself it's just too expensive especially if you want something nice. I definitely don't want to be house poor 😞

[@carmanfan156]

I closed on my new construction house 4 days ago 6/24/22 ... just want to say thank you for all the great advice you give out every week 💯 I watch almost everyone of your videos for about 5 months straight lol 😂

[@ShaheedahHill]

Congratulations on your new home!!! Thank you for bringing me along on your journey😊

[@hallyjohns3013]

Ditto…I’m closing August 8,2022….and I found your channel in the middle of the house buying process but I have probably watched every one of your videos and I have learned so much !!….Your channel has been of great value to me…Thank you Shaheedah……I will continue to watch!!…I’m hooked !!

[@SXJAYSX]

So glad I was able to close on my house in December and lock in that sweet 2.35% rate. Even then our 1400 dollar mortgage is *was* at time of closing, like 45 percent of our single earner income. We deff would've been priced out of this house at any higher. Would probably be 1600-1700 for the same house now... And with both of us working now it all worked out. But we are extremely fortunate for sure...

[@nicolemisner5337]

Someone showed me you, because you are wholesome and realistic!!!! You are real to realistic people!!! If you’re looking for someone real to follow advice from, follow her! I liked every single one of her videos because she was real and explained everything we needed to know! Follow her! It’s not about the market, she is about what your needs that’s what I like that’s different! Thank you shaheedah!

[@ericak6841]

So many people are thinking … “ Will I EVER be able to purchase my first home “.

[@brotherdekaka]

we are 5 months now mortgage free after finishing paying our 30 yrs mortgage in 4 yrs, what a joy ! it can be done

[@ShaheedahHill]

Congratulations!!

[@soniciris]

I'm currently saving towards a house and my rent + amt saved is about 40% of my take-home pay, so that's the percentage 'going to housing'. It's hard, I only give myself $150 fun money a month and I eat a lot of rice and potatoes and get most of my entertainment from the library, but it's worth it to me for the stability of a home.

[@ShaheedahHill]

Thanks for watching!

[@DietricWilliams]

Dang assuming the average mortgage in L.A. is $3,000, 35% of net come out to be $8,571/mo or $102,857/yr. Assuming an effective tax rate of 22% for that salary, then the buyer has to make almost $132,000/yr gross. That is almost impossible here in Los Angeles and hence why many find it unaffordable out here. We need those Georgia prices out west!

[@Steve-ge8ji]

Maintenance and repairs.....my sewer water main pipe was damaged by my redwood tree. Had to fix the water main and have the tree removed....10k....

[@jasmynmadison5984]

Your homeowner’s insurance didn’t cover that?

[@JasmineAvril]

My husband and I qualified for our home last year on my income alone. By this example (and if I were single) I’d be at 38%. I was watching you, Javier, and Dave during our process. Homebuying is possible, but it will be personal to you based on your income.

[@Ana-ns7ek]

heyyyy shoutout to Javier!!!!

[@ShaheedahHill]

Thank you for watching - great channels to follow.

[@sijisiji8100]

From London to New York, Berlin, Amsterdam, Nairobi etc it's the same story of increases in mortgage interest rates. I have decided not to worry where I will live - the bird nest anywhere he finds safe.

[@ShaheedahHill]

Thanks for watching!

[@enicole101]

This video is right on time for me. Thank you!

[@ShaheedahHill]

You are so welcome, thank you for watching.

[@JustHere751]

Ms. @ShaheedahHill has help me so much throughout my buying process. More thn my actual realtor. I owe her so much.

[@lorip4051]

We follow Ramseys rules and our mortgage is 10% of our income. We chose a smaller home in a rural area to make it work. Having one bathroom and a small kitchen took some getting used to, but we haven’t been this happy in a long time as our goal was to reduce debt and be realistic about our wants. We want to support our children’s college funds. It wasn’t an easy road, we went 10 years without buying anything new. We bought gently used items when something was needed, including clothes, shoes, and household needs. We both worked our full time job and a part time job. It was tiresome, but I would do it all over again.

[@ShaheedahHill]

Way to go, thank you for sharing.

[@t.alexander5412]

Thanks! Keep putting out that good info. God bless take care be safe.

[@ShaheedahHill]

Thanks for watching

[@kreyolappliance1469]

Florida is off the wall. Rent in some place in Tampa can go up significantly. Wether buy or rent, the market forcing everyone to spend more then they can afford.

[@alexisrodgers6941]

What if your mortgage started out that way but as now gone up significantly? My mortgage initially started at 650.00 now 6 years later it’s 1,034… so there’s mortgage increases but no pay increase

[@ShaheedahHill]

Yes, that is a problem. With home values increasing so quickly many wages have not kept pace. I would make sure you are getting any property tax exemptions you are entitled to and quote your insurance with another company to see if you can save. Thanks for watching!

[@knocker9982]

I totally agree that a house is for long time... when it comes to sell in 10, 15 or 20 years then house prices will be in a completely different price category...

[@TreasureChest0806]

I’m currently spending 31% of my take home pay on renting. There’s no way I’ll be able to get that for a house or I’ll live in a fixer upper of which I’m not prepared to do. The market is still silly & unattainable. I’m not a first time homebuyer & currently have a house I’m renting out in another city. But I cannot afford to live where I would like.

[@13ikea]

I agree . The average person will spend way more than 35% of take home for a mortgage. I’d like to see more opinions from single income homeowners not maki g 6 figures.

[@obaaAkos02]

@@13ikea I am a single parent with two kids. I Purchased my home 3.5 years ago in Jersey (30yrs term) and my mortgage is 39% of my salary. My home cost me $250K and it's worth almost 400K now. So technically, I will not be able to afford my home if I was on the market looking now. My hearts goes out to those trying to buy them. It's tough.

[@ShaheedahHill]

Thank you for watching and sharing.

[@arain764niara]

I'm considered middle class I guess and even with 25-30% of my net income it's not enough for a mortgage. I'm looking for a second job but that's only gonna help pay my increased rent and not save. Nothing feels worth it anymore

[@mikesaintjulesmusic]

Good video for me to reconstruct my budget, but in no way would I be able to put that little of 28% onto the mortgage. I am looking at around $23-2500 before utilities based on the interest rate in NY now. And it's a Condo!

[@ShaheedahHill]

Thanks for watching!

[@hitsofmisses]

@Shaheedah Hill: Does “Take Home Salary” mean after tax only or after tax, health insurance, life insurance, 401k deductions, HSA, etc. deductions?

[@ShaheedahHill]

Yes, what actually gets deposited in your account each month.

[@hitsofmisses]

@@ShaheedahHill Then most can barely afford to rent!

[@kiathadiva7]

At 36yrs old ( in the Millennial gen) I’m scared I won’t by my first home… I’m praying it’s GOD will that I will buy my home .. I have been keeping my credit right and income stable( high student loan debt - but I will tackle it … everything is WAY too high … and I have a son who’s 10 who I would like to one day send to college w/o student loans … but renting lol I think I’m paying a mortgage payment already for an apt not a house !!!… something has to give!!!

[@yeyem6678]

Dont worry about your age? Im about to close on my first home and im 43 yrs old going on 44

[@skyehtlimit]

We are in the same boat. I have a 7 yr old. And every year it seems more daunting than the last. I want a house, but being a single parent is already stressful. Seems like I will never be able to afford a decent home for us. 😢

[@qornh4197]

Here n baltimore houses around 175 is ran down 😢

[@LoveLife-gv8jg]

I'm sure you must have made a video on this question but I can't find it. I'm a new sub!! How much of a down payment should I put on a house? If I'm buying a home at 240k but I have 60k to put down should I put it all in? Besides the 60k I only have 20k in savings and investments.

[@ShaheedahHill]

Welcome to the channel. I surprisingly to do not have a video on this question, however, coming soon😊. My answer to this is after you account for the minimum down payment, you have to think of the opportunity costs of the remaining money, would it be better used as emergency savings, invested for retirement, used to pay off debt?

[@creepycharlie6160]

Thanks for the advice. Can you do a short vid about rent to own when you have a chance?? Are they good or bad choice?? Please and thank you ☺️

[@ShaheedahHill]

Thanks for watching! I can but short preview - overall I am not a fan.

[@Homentertainement2]

It’s like leasing a car and then after the lease taking a loan to purchase the car.. Or maybe a better example is getting your loan from a bank/credit union or a Buy-Here-Pay-Here. The 2nd option is going to cost 3x more than the 1st option but it’s because their taking advantage of your situation at that time

[@TreasureChest0806]

My sister was in a rent to own program. She ended up completely upside down in her mortgage in a not so great neighborhood & school district. It was awful bc the property was worth nothing & she had overpaid on it.

[@creepycharlie6160]

@@TreasureChest0806 Oh no that’s terrible…thanks for sharing.

[@obaaAkos02]

I will not recommend it. Anything can happen. The homeowner can decide not to sell the house at the end when the tenant can't make them. I know someone who did rent to own. The tenant couldn't buy the house because the landlord had a lot of liens on the property and KNEW that it was going to be difficult to see the house and didn't tell the tenant. The matter is still in court.

[@jillmorton3096]

Great info. Thank you😊

[@ShaheedahHill]

Thanks for watching!

[@Ana-ns7ek]

Ugh, so basically I need an income of 12k a month or more to afford living on the west coast of the states to not be house broke. A tough realization to have and thank you for your numbers/expertise on this.

[@ShaheedahHill]

Thanks for watching!

[@13ikea]

I’d like to remain hopeful but these numbers are for very high earners or more than one income .

[@ShaheedahHill]

Thanks for watching!

[@charnamosely372]

Always good advice

[@ShaheedahHill]

Thanks for watching!

[@trell019]

So is this just mortgage or EVERYTHING ROLL IN

[@ShaheedahHill]

Everything, principal, interest, taxes, inusrance, and mortgage insurance(if applicable)

[@trell019]

@@ShaheedahHill THANK YOU!!!!! 😊

[@msblessalkalinemix7834]

It’s unrealistic to pay only 25-35% of take home due to the high maintenance prices for home. Mortgage payments are around 2-3k right now especially with inflation

[@ShaheedahHill]

This is a benchmark but if you let too much of your income go to housing & maintenance you will not be able to build wealth for yourself or your family. So you have to reduce expenses or increase your income.

[@doncorlion9251]

We just agreed to terms on a villa $310k 3/ 2.5 1690 sqft. Mortgage looks to be around 2400 including HOA and taxes. We’re using a Hometown hero loan that covers the 3.5% FHA Down payment requirement and using the rest to cover closing. My significant other and I make about 6500 a month. I’m kind of panicking, I don’t know if I should be.. especially with the rates so high. Any advice, thoughts or recommendations? I’m open to all

[@DieselPurge]

HOA, not a good idea.

[@doncorlion9251]

@@DieselPurge Yeah the HOA is tough to with..

[@ShaheedahHill]

It looks like you are at about 35% of your take home pay, you should be fine. Make sure you have an emergency fund and if you break up know what is going to happen with the house, becuase it looks like neither of you can afford the home on your own. With marriages those things will likely get settled in the divorce.

[@doncorlion9251]

@@ShaheedahHill I appreciate you responding. We’re sticking it out till the end lol, the living room is the breakup room. We’ve just been praying and wishing for the best and putting our best foot forward.

[@lesliessgarciaa]

I live in an HOA and LOVE IT! The yard is always cut every week, we have a gated gate, trash/recycle, community pool, and some exterior maintenance. We pay 125 a month for it. Totally worth it. Do research on the HOA. me and my husband are 26, so we travel a lot and it is nice to know our house is well kept/safe. I live in East Cobb Marietta GA.

[@angeliamattingly]

Not in these days. Ours is more then 35% our income is almost 3,000 our mortgage will be $1,800.

[@ShaheedahHill]

Its possible and if its not you have to work hard to increase your income.

[@earthquake1011]

With interest rates close to 7%, would you increase the % from 25-35%?

[@ShaheedahHill]

Adjust your purchase price not the percentage.

[@ElleBrOw]

Tuned in with my apple martini 🍹

[@superwmn100]

Can you tell me what you think about these lease to home programs ie....Hompartners of America, and American Dream?

[@ShaheedahHill]

Not a fan of most of them, I'll do a video soon.

[@vernonhermon8930]

Thanks for the info

[@ShaheedahHill]

Thanks for watching!

[@Iamcherese]

Thank you!

[@ShaheedahHill]

You're welcome!

[@Ayititunes]

First home should be a 3 plex or 4 plex to help with mortgage

[@ShaheedahHill]

Thanks for watching!

[@janetgordon5034]

Thank you for the video very informative

[@ShaheedahHill]

Thanks for watching!

[@olfab1]

Love you Shaheeda but we all know that for the majority of Americans, this is unrealistic, whether you are buying or renting.

[@ShaheedahHill]

Love you to 😊let this be a benchmark. If you pay to too much of your income to housing you will never get ahead. You have to increase income or reduce expenses. 64% of Americans live paycheck to paycheck so to build wealth with high expenses is nearly impossible.

[@olfab1]

@@ShaheedahHill Agreed. I need to keep increasing my income and reducing my expenses.

[@monicarenee7949]

It was definitely unrealistic for me. That’s why even with me making a high income I got some side gigs. I want to still be able to cover college savings for my child and investments and other business opportunities. I’m working like crazy just to increase my income, where I would have been able to comfortably afford a house only a couple years ago.

[@tmac-dd8nd]

Hi Mrs. Hill. Question, I am disabled and my wife is my "Payee". As the sole Borrower(Wife), can she add my SSDI income to her own to qualify for a mortgage? I can't find any posts or videos to tackle this question.

[@ShaheedahHill]

Yes, she should be able to . Get a preapproval from a lender.

[@boyer89joe]

I just hope i can figure out how to buy my first house ever once im in im not selling my house unless i foreclose im not leaving im tired of going apartment to apartment im homeless now ive got to figure out how to get my credit back up it recently slipped from 580 i was trying to keep it there then i had to stop paying 2 medical bills to put more money into me and my brothers last apartment now im at a 524 i want to at least get to 600 before i get to a fha loan i just need a bit of help it shouldnt be this difficult

[@AlexandritheGr8]

Medical bills are no longer included in your credit score. Good luck!

[@boyer89joe]

@@AlexandritheGr8 where did you get that i just looked at my credit karma they are still there

[@stancal9249]

So, just spit balling, but using 25-35% of net income... a single person with ZERO additional debt making $65k gross annually (2020 census median income), with a take home of about $4,000/month, putting up a full 20% down payment (uncommon), could afford a house between... .... $125,000 and $185,000. *sigh*

[@newyorkbo1]

So, most of us could afford a house in 2003

[@JustHere751]

💜💜💜💜 thank you

[@ShaheedahHill]

Thanks for watching!

[@dchardinaycole5944]

That’s 60,000 what about 40? Not to do the math but there’s never a home for me for 500 a month

[@geraldinecollins821]

Thank u for giving examples as far as the per centage

[@Louisiana2Texas]

Why is the rule of thumb is to always save 6 months of your household monthly bills including mortgage. Why is 6 months is the magic number?

[@ShaheedahHill]

It usually takes someone 3-6 months to find a job after being laid off. Good question. Thanks for watching.

[@Clarence2Worley]

What percentage on a 30 year?

[@ShaheedahHill]

This video was for a 30 year. Dave Ramsey's recommendation is 25% for a 15 year.

[@Clarence2Worley]

@@ShaheedahHill ok awesome. Ty so much.

[@pierrefleurose9646]

If after taxes someone bring home $6600 a month home how much should there mortgage be.

[@ShaheedahHill]

Please watch the video in full and calculate. I give examples.

[@Homentertainement2]

Just multiple percentage to $6600 to figure out how much you can afford

[@obaaAkos02]

$2,310 is 35% and $1,650 is 25%. Realistically, with the price of homes and interest rate, most people are paying way more than 35% for housing even with two incomes. Its tough out there.

[@MrJrolon1975]

I make about the same, so I was wondering the same. We went into contract on a new build home last year in December and were expecting to close in October but I'm freaking out with these interest rates.

[@obaaAkos02]

@@MrJrolon1975 Don't freak out. In a worst case, you can definitely refi as soon as possible after you close. That's what most people will probably have to do in few years in this market. Due to equity and wealth building, buying is STILL better than renting. Good luck hun.

[@nighni459]

Sorry we all don't live in rural areas

[@ShaheedahHill]

The numbers are the numbers, it is hard to build wealth when the majority of your money is going to housing and basic needs. I get it, we moved from New York to Georgia becuase of that. With remote work, this is possible for even more people - take your city income to a more affordable area.

[@littledetailsbydarby3240]

OMG 💔💔💔 I live in the Phoenix, AZ area and won’t be able to afford to buy 😢🥺🥺😢 homes in a 1/2 decent area are $400k & higher

[@923crono]

I live in Phoenix and cannot believe how things have changed since I bought in 2017. It feels like the Seattle market. Overpriced and not enough to go around!

[@Machenziethemodel]

Can rent poor be a thing 😆. Every year it goes up.

[@ShaheedahHill]

Yes, it can. I think for housing in general - keep it below 35%, get a roommate if possible to lower expenses.

[@Machenziethemodel]

@@ShaheedahHill I’m in a one bedroom in the hood and I don’t trust people like that. They like to steal over here.

[@cardiac711]

😔 Worse than I imagined.

[@bigrod997]

$1200 to $1300 per month

[@audreys9770]

can someone please tell me how much an electric bill would be approximately for an all electric 800ft condo. I'm trying to budget. Thanks. especially with the current heat wave. this would be for someone out of the house about 5 hours daily but home the rest.

[@whatisthis27]

If you have the address you can call the elecrric company and they will tell you.

[@ShaheedahHill]

Yes, you can call the electric company or ask the seller to tell you.

[@audreys9770]

Thanks @GiftedSou ASMRl! Thanks @Shaheedah Hill

[@pppaaattt8401]

👍🏼👍🏼👍🏼👍🏼

[@ShaheedahHill]

I would get a house, the HOA fees are usually lower and more stable than condos. Here is my video on condos - kzbin.info/www/bejne/maWxhaF_qZysgqM

[@pppaaattt8401]

@@ShaheedahHill Thank you. After adding up the $400 HOA fee x 20 years ( without increases) I decided to get the house. Ty!!!

[@jcrowley1985]

Im glad I bought in 2017 before bidenflation ruined it, thank you trump

[@ShaheedahHill]

Thanks for watching!

[@STACIEMLA1818]

Thank you for such great advices!

[@ShaheedahHill]

You are so welcome!