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Housing as a percent of income?

Asked by boettiger (123points) August 3rd, 2008

Finance experts say that your mortgage should ideally be 30% of total income. One might assume that since you can only make a mortgage payment with NET income (not gross), that they mean 30% of NET income (after-taxes). Is this correct? And is it just the mortgage or “Housing” (which would include property taxes and homeowners insurance?

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