i earn $120,000 annually and would like to know if you think i can handle a $750,000 house for 1 year.?

Answer 1

do the math silly ... don't think it's gonna work out

Answer 2

When financial analysts determine how much money can be loaned to an individual, not only do they take annual income in to account, but also debt to asset ratio.

Usually banks are willing to loan more money than a person should be willing to afford. Meaning, a lender will give you just enough rope to hang yourself with. Lenders make more money on late fee's and penalties than they do in interest over the short-term.

Typically, lenders will lend up to 3 times a persons annual income for a home.

People that make $120,000 typically bring home between $6,300 and $7,000 a month after taxes and insurance. This is the number you should work with. I have no way of knowing what your house pmt would be, due to interest, interest only loans, down pmt, etc. Inventory your bills. Include everything, including day to day expenses. Determine what percentage of your monthly income you are willing to dedicate to your home. Keep in mind, property taxes, energy bills, etc. will be incredibly more expensive for a home of this size and expense.

My guess is that you could some how figure out how to make it work, but you would be strapped and in a poor financial position if something unforseen comes up. However, I have no idea what kind of financial power you are bringing to the party other than annual income.

If it were me, I would rather have more disposable income than mortgage myself to the limit, but I think I am in the minority.

Answer 3

probably not unless you have really no other expenses and/or you have money for a pretty large down payment.

it depends on the financing arrangements - how much of a down payment can you make, or is 750,000 the loan amount? what other monthly expenses do you have? (food, car payment, etc)

going on the assumption that you are talking about zero down (eg. a $750,000 loan amount):

interest only payments on a 30 year loan of 750,000 at 5% are $3125 a month. (this is just the interest payment, and doesn't include property taxes, etc) If you could afford this much (plus the property taxes) on a monthly basis after paying your other expenses, then you potentially could afford it if you could get the loan at that rate for a year.

assuming you could get a loan from someone under these circumstances - most banks probably wouldn't make a loan that cost you more than $2800/month based on your salary, and even that assumes you have no other expenses (food,gas,car,etc).

check out the calculators that show how much you could afford given various parameters of income and expenses:
www.bankrate.com

Answer 4

If you earn $120,000 per year you should be able to think this out or ask your financial adviser.

If you are going to have the house for one year, are you renting it or buying it? Depends on your other debts and what the house payment would be. How do you know you will only have it one year? There are a lot of questions that need to be answered before you could make a decision.

Answer 5

depends. on many factors. location, how much ur spend on other things, other payments u might make, if u are supporting anyone such a big family.etc.. this is too general

U may make 120k a year but if u spend 200k on cars and other expensive stuff then u have a problem pal.

Answer 6

I think the rule of thumb is your income should be 4 times your house note, so you will have to do some math.

Answer 7

Depends on your asset/debt ratio and how you spend your money. If you are prudent it can be done. It also pays to check into various types of loans.

Answer 8

It could work depending on what other bills and expenses you have going out.

Answer 9

hate to be the barrier of bad news but you could not do it.

Answer 10

SUP to your favorite lender, not me!