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A math question

May 15th, 2009 at 01:39 pm

Pardon my ignorance, but can anyone tell me the math formula to determine how much of our income is being used to pay our mortgage every month? How much of our income should we be spending on the mortgage?

Thanks!

4 Responses to “A math question”

  1. creditcardfree Says:

    Mortgage payment/income

    Example: $1000/$5000 = .2 or 20%

    I think the rule of thumb that banks follow is that your mortgage payment should be no more than 28% of your gross income (income before taxes and other paycheck deductions).

    Hope that helps!

  2. NJDebbie Says:

    Thanks for the information. We are right at the 28%, I wish it was less though!

  3. Broken Arrow Says:

    Totally off topic, but why is your avatar a banana stand? Do you own that fruit stand, or is that more of symbolism for something?

  4. NJDebbie Says:

    Hi Broken Arrow,

    It is culturally symbolic for me, my mom is the lady by the fruit stand. Have a great weekend!

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