👉 Okay, settle in class! Let’s tackle something that frankly, has made me sweat a little lately: "Mortgage to Income Ratio Reddit." Now, I hear you young’uns are obsessed with this stuff, trawling the internet for the latest financial anxieties, fuelled by whatever hot take someone mumbled on a forum.
Basically, what we're talking about here is shorthand for an insanely depressing calculation in the housing market. Let me unpack that for you. What exactly IS the Mortgage to Income Ratio (MIMI)? The MIKI – and I’m personally lobbying for that acronym to stick - measures how much of your monthly gross monthly income (what actually hits your bank account, before deductions!) goes towards paying off your existing debts, including your mortgage. Here's the formula, dumbed down: (Total Monthly Housing Payments / Gross Monthly Income) Total Monthly Housing Payments: This covers your principal and interest on your mortgage, plus property taxes, homeowner’s insurance, and potentially HOA dues – basically everything you throw at that pretty beige house. Gross Monthly Income: Your actual, cold, hard money coming in. The Reddit Factor - And Why It's So…Dramatic. Now here's what makes it a Reddit-thing . Redditors (seriously?!) tend to freak out when they hit the 43% or higher mark for this ratio, and then REALLY freak out
