Only 34 percent of the American working population earn more than $65,000 in annual salary. In fact, according to My Budget 360, only 17.8 percent of all U.S. households make more than $118,200 a year. Only 2.67 percent make more than $200,000. The median household income in the U.S. is $46,326. That’s not much, folks, when you’re trying to make a house payment, car payment, paying utilities, credit cards, food, cable, insurance, and more. Wonder why so many people have fallen behind on their mortgages? Consider this from the site:
On average, the net pay for a household is $3215.37.
I ran the numbers for a state with no state income taxes, Texas. A family at this level is only bringing in $3,215 a month. The national median home price peaked around $200,000. So let us assume this family purchased the median home:
5% down payment: $10,000
Mortgage 30-year fixed (6.5%): $1,200
Taxes and Insurance: $333
PITI: $1,533Right off the bat, this family is spending 47% of their net pay on a median priced home. We didn’t even account for any pre-tax retirement account investing.
Renting really can be a better option for many!
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