What percentage of my income should spend on the mortgage for my second home?
Answers:
It depends on what your total income is, and what you spend for your first home. Generally, you should not spend more than 35-40% on housing costs.
Please add more information to your quiz.
If you have a mortgage on your first home that is sucking up 50% of your income next you shouldn't have a second home.
If your mortgage is paid rotten on your first home, then you can probably go to the traditional 28% of income.
Of course, if you enjoy credit card debt out the wazoo, you should pay it off a bit than buy a second home.
You cannot just ask a single question more or less your finances in a vacuum, you need the in one piece picture.
I assume you mean a vacation home. I would enunciate no more then 10%. This is about what ethnic group spend on vacations a year.
your total mortgages should not exceed 38%! This is for your first and second mortgages combined... Source(s): brother in law
Related Questions:
Can anyone enlighten me why within America the home mortgage rates are tremendously low between 2% and 3%, whereas..?
in Australia the average is around 10% ?. the Australian government voice it is due to inflation, could it be the fact that the major bank are having big losses in America and so hope...