Question

Using proportions, if your (or your parents') monthly mortgage payment is $1,125.98, at least how much of your monthly realized income be to stay within acceptable housing expense limits?

Answer 1

To determine how much of your monthly income should be allocated to housing expenses, we can use the common guideline that housing expenses should not exceed 28% to 30% of your gross monthly income.

Let's calculate the minimum monthly income required to meet the 28% guideline.

Given:
- Monthly mortgage payment = $1,125.98
- Maximum housing expense proportion = 28% (0.28)

Using the formula:

\[ \text{Monthly Income} = \frac{\text{Monthly Mortgage Payment}}{\text{Maximum Housing Expense Proportion}} \]

Substituting the values:

\[ \text{Monthly Income} = \frac{1,125.98}{0.28} \approx 4010.64 \]

Therefore, to stay within the acceptable housing expense limits (28%), your monthly income should be at least approximately **$4,010.64**.

If you were to use the 30% guideline, the calculation would be:

\[ \text{Monthly Income} = \frac{1,125.98}{0.30} \approx 3,752.93 \]

So, your monthly income should be at least approximately **$3,752.93** to stay within the acceptable limits based on the 30% guideline.

### Summary:
- Minimum Monthly Income at 28%: **$4,010.64**
- Minimum Monthly Income at 30%: **$3,752.93**