I make 36k and my mortgage was for 71k on foreclosure. You can do it, the payments won't be the problem, it'll be saving enough for the down payment and closing costs.
I make 36k and my mortgage was for 71k on foreclosure. You can do it, the payments won't be the problem, it'll be saving enough for the down payment and closing costs.
salary: $100,000
house value: $120,000
Our ratio is 0.94, in the Columbus Metro Area. Owe 9 years of a 15 year mortgage.
Won't quite pay off the house before our first kid starts college. Not a deal breaker though, because if my kids want to go to a private school, they'll be doing it on their own.
what an eff'in stupid statement. there are homes in the best location with the most desirable school systems that have dropped in valuable by 25%. Learn how prices work.
Ask My Wife About Real Estate wrote:
(dropped about 1% in value from when we bought it in 2003; benefit of good location and desirable school system).
truth911 wrote:...there are homes in the best location with the most desirable school systems that have dropped in valuable by 25%. Learn how prices work.
Maybe so, but in the balance of all possible influence factors, good schools and a desirable location would help limit losses, keeping them lower than average in a given area.
Perhaps it is YOU who should learn how housing prices work... speaking of eff'in stupid statements.
Man, where do people live? We live in an 1800 sq ft home w/ 2 baths (because we added one), 3 BR and it cost 220k.
Anyway, 220k (purchase price in '03), current value about 250k but we've done a ton of work on it (and added +/- 200 sq ft. in a dormer).
Combined income 110k.
Also, in terms of what's "OK", 2x income is great if you can pull it off. You'd never manage that in our area.
Also, it depends largely on your other debt. We have no car loans, no student loans, no debt besides home. In addition, we live a pretty modest lifestyle. Because of that, we are well ahead on payments, paying for all renovations in cash and currently looking for a vacation/retirement home.
end brag post here, I guess.
Make: $45,000
Owe on house: $58,000
House is worth: $120,000
hurcub wrote:
and since i do most of the financials, we're saving a nice chunk..
what does this mean? you prepare your own taxes?
truth911 wrote:
what an eff'in stupid statement. there are homes in the best location with the most desirable school systems that have dropped in valuable by 25%. Learn how prices work.
Ask My Wife About Real Estate wrote:(dropped about 1% in value from when we bought it in 2003; benefit of good location and desirable school system).
He was speaking of his particular home.
What an eff'n stupid statement. Learn that that not all circumstances fit nicely into your generalities. Also you want to stop being a dick.
random a hole wrote:He was speaking of his particular home. ... Learn that that not all circumstances fit nicely into your generalities.
Exactly, he was speaking of his own particular home. YOU were speaking in generalities.
Clearly this toic is beyond your grasp. Don't worry, you're not to blame. It's your parents' fault.
I don't know where you live, but in general that is BS. In my state, you will pay about 2k in property taxes for a 500k house. In a place like CA, you will pay about 5k. The highest state (there will be some localities with higher rates) rate is about 1.8% or less than 10k a year. Most people making more than 100k have mortgage/rent of over 10k a month. Now having to pay the 150k in taxes the year you are given the house is another thing. Or if the house is a condo/HOA place that has 800/month dues.The problem with these rules of thumb is that there are a lot of depends. At 30k, things like food and transportation make up a good chunk of your budget. At 200k, they are a much smaller fraction (unless you want them to be more). 2-4x is a reasonable range but that is wide enough to to really help. Personally the easiest way to do it is to say that your mortgage shouldn't be any higher than the rent you can pay. But since your poor (i.e. your not getting any tax breaks by buying), buying should probably be significantly cheaper.
prediction pete wrote:
I meant "no more" than twice your annual income. Even if you have a huge amount of money saved it is poor economics to buy a larger house. The taxes will kill you. It is not just the amount that you need to finance that needs to be taken into account.
I make $100k a year and I could not afford a $500k house if it was given to me.
combined: $98k
owe on house: $395k
bought december '09 for $437, put 20% down and have put $60k into it to get it liveable. didn't move in until summer after 6 months of rebuilding it myself.
4 bed, 2 bath, 1/2 acre in a town full of W.A.S.P.'s. town has little-to-no crime, luxury cars at every intersection, luxurious golf courses, and over 100 miles of horse trails that have been in place for over 75 years. English speaking people at the gas stations, downtown, and the local car wash. Local manufacturing on the outskirts of town. It's what the rest of America wants to be.
I love it.
asdfasdfas wrote:
Most people making more than 100k have mortgage/rent of over 10k a month.
They would have to make 120k and spend 100% of their gross income on mortgage/rent in your scenario, which is obviously not possible.
schmuck wrote:
combined: $98k
owe on house: $395k
bought december '09 for $437, put 20% down and have put $60k into it to get it liveable. didn't move in until summer after 6 months of rebuilding it myself.
4 bed, 2 bath, 1/2 acre in a town full of W.A.S.P.'s. town has little-to-no crime, luxury cars at every intersection, luxurious golf courses, and over 100 miles of horse trails that have been in place for over 75 years. English speaking people at the gas stations, downtown, and the local car wash. Local manufacturing on the outskirts of town. It's what the rest of America wants to be.
I love it.
Wow that's all I have to say. And what town is this so I can make sure to avoid you.
110k salary
Bought house for 175k a year ago. I enjoy traveling and going on vacation and find this is the max house that I can afford.
asdfasdfas wrote:
Most people making more than 100k have mortgage/rent of over 10k a month.quote]
I think only the very rich, i.e. those making close to 1/2 a million a year or more, would be putting 120,000 a year towards rent/mortgage. Perhaps there are exceptions, but I know many people making over 100k, and nobody comes close to 5k a month, let alone 10k.
I make 165,000/year, wife quit her job several years ago, and we have a 1,500/month payment for our house (bought for 250,000 in 2002, about 195,000 left to pay.
$1,100,000 home. Owe little less than $400k on it. Just refinanced with a 3.75%/15-year loan. House is 1600 sq ft 3 bedrooms/ 2 bath. Yes, it's a coastal location.
Don't make much over 6 figures.
Surprise! wrote:
They would have to make 120k and spend 100% of their gross income on mortgage/rent in your scenario, which is obviously not possible.
I assume asdfasdfas meant that households making 100K pay at least 1K per month on mortgage.
Wife and I make about $270 gross and pay about 3K in mortgage on a home worth about $650K bought 10 years ago.
I'm in a similar situation:
House: $1.25M
Down Payment: $350k
Mortgage: $900k
Yearly Income: $200k
This is in San Francisco - so most housing is $$$$.
But, for us it's worth it...you just gotta do what is right for your own situation.
Nancy Drew wrote:House: $1.25M
Down Payment: $350k
Mortgage: $900k
Yearly Income: $200k
I'm assuming with that kind of mortgage on that income you must be cash poor. What's your net take home pay and monthly mortgage payment?
You should all just be glad you live in a country with such low interest rates at present.
I live in a country where we signed on for our mortgage 5 years ago at 10.65% and that was a good deal. Have since re-fixed at 6.25% (again, a really good deal).
Combined income: $100,000
House value at purchase: $360,000
House value at present: $420,000
Mortgage: $310,000
Monthly payments on 25 year loan: approx $2200
Rental payments if we were to rent the house: $1800
We are in a comfortable financial position in relation to our friends and can easily live the lifestyle we enjoy, and our house value increases because we bought in a good location and will stay here a few years and take the capital gain when we move on.
Hearing all the stories in the media about foreclosures in America seems crazy when your interest rates are half what many other countries are. There are obviously a lot of people who just don't know how to manage their money.