How much should my mortgage be based on my income?

General
1

How much of my mortgage percentage be compared to my income? If I make about $7500 after taxes take home income. Is it okay to have a mortgage with property taxes and insurance to be around $2600/month? This makes it nearly 35% of my take home income, feel like that is quite high.

Breakdown of my expenses: $469 car lease $125 car insurance $350 gas+Tolls (long commute) $1000 groceries $100 subsribtions $200 donations (different organizations) $101 Family Phone Bill $200/mo Savings $300/mo investing $155/mo Entertainment TOTAL - $3000

So if my mortgage is $2600 (including taxes and insurance) and lets say $350/mo in utilities, that will put my total expenses at $5950

I should be left with $1550 per month for miscellaneous or can use that to pay down my mortgage more.

Love to know your thoughts, thanks!

2

I keep housing costs around 25% of take-home pay. I minimize bills and bought a cheap house to pay it off quickly. I’m happier with extra cash flow than having a more expensive, fancier home.

3

The first thing to list is at least 15% to retirement and then % to savings.

4

Does your wife have an income? Do you pay childcare? What are your other debts if any? Like student loans? What does your savings look like?

5

My savings after I put a downpaymnet on the home will be about 10k cash but I have about 100k in liquid investments that I dont want to touch right now

6

$10k isn’t enough. One home repair could drain it, especially with a high mortgage and family plans. Wait for a better house, promotion, or save more. Avoid being house poor with two little ones.

7

If it helps it’s a brand new construction home, everything will be brand new