how much house can i finance on 90000 salary?

Answer 1

Here is the real deal. It really all depends in many different variable that come into play when figuring out how much money you can afford (Fico score, current debts, documentation, type of property, type of loan, loan amount, down payment etc, etc) So what ever estimation that you are given, you should understand it is not precise at all.

But if you are looking for a quick answer than here it is. Add up ALL your monthly payments that you make on your credit cards and other debts showing on your credit report including an estimation of property taxes and insurance. Now divide your yearly income which is 90K by 12 and that is your monthly income (before taxes). Now divide it by 2. This amount minus your total monhtly debt payments is the MAXIMUM you should be paying in monthly mortgage payments. I say maximum so you dont get into trouble later and not be able to keep up with your mortgage payments.

Eg:
Total monthly payments in cc, other debts, property taxes & ins $975
Monthly income $7500 (90000/12)
Amount available for mortgage payments $2775 [(7500/2)-975]

Like I said this is simply an estimation and by no means it should be followed to qualify yourself and see if you can afford the monthly payments. Also if anyone is telling you that they can give you a loan for $$x amount or an interest rate for whatever amount, BE CAREFUL, as they know better that we need more than just one or two figures to figure out your monthly payment. The best way to do it is having a professional mortgage consultant qualify you and advice you on how much house you can afford by looking at your whole financial profile.

I hope this answers your question, good luck

Answer 2

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Answer 3

You can finance as much house as you want if you have a good credit score. Your salary may mean nothing if you have lots of debt. But the other formulas are pretty close. $3000 is a same number just be sure is $3000 on a fixed rate 30 year or less. I can get you a $3000 payment on a Million Dollar home but that is an ugly loan. Good luck

Answer 4

Boy, this is a big question. Really you can get pretty much anything you want, if you have perfect credit. What are you looking at? What is your monthly expense right now? Depending on the type of loan you are looking at you could max your debt to income ration out at 55%. What this means is all of your payments on your credit report plus your new mortgage and you taxes and insurance can not go over 55% of your monthly income before taxes are taken out. I am willing to answer this exactly if you want. Just email me. There are other things you need to know before you buy, like what are the closing cost, can the seller pay the closing cost, Is your lender charging you to much, did you get the rate you qualify for. Make sure you know all of this before you decide on what loan you are going to get.

Answer 5

Rule of Thumb: 90,000 div by 12 = 7500.00 mo

Look into prices of homes, and take into consideration of the taxes and home insurance policy.

Estimates only:

Insurance estimate 1600.00 yr 133.33 mo.

Property Taxes estimate 3,000 yr 250.00 mo.

That is 383.33 a month, (if you escrow) this amount will be added on top of your P/I Principle and Interest payment.

Now decide on your payments:

7500.00 - 383.33 (Taxes and Insurance) = 7116.67 left.

50 percent of your income comes to 3,750.00
40 percent of your income comes to 3,000.00

You have to consider your total monthly debit to get to your DTI that lenders look at.
Car payment, lease payment, credit cards, any monthly debit, but do not include utilities, cell phone etc.

I would think you would be confortable with a payment in the 1,500 - 2,000 range or below.
1500.00 - 383.33 (taxes & ins) = 1116.67 for a house payment.

A 200,000 mortage at 7 percent is 1330.60 (P/I) Than add taxes and Insurance for a total payment of 1713.93 That leaves you with 5,786.07 for your other monthly bills, etc.

The above is an estimate only - Depends on how much you want to borrow, your credit score and the rate you qualify for.

Also:

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 100 percent ltv the rate is around 7 to 7.50 percent. This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Good Luck to you - A Broker, who cares, will go over it all with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process

Answer 6

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RE :How much house can i finance on 90000 salary?
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Answer 7

I'd say 30% of your income but alot has to do with what you are paying on now like a car or student loan You don't want to go over your head on financing I have a friend who works with loans and stuff and she says she c a lot of people going to far and then can't afford it down the road.

Answer 8

It really depends on how would you pay for it. If you have 30 yr fix, you're loan amount will be lesser as when you have 5 yr ARM. Also how good your credit score and existing loans you have plays a big factor too.

Answer 9

Well it depends on your debt to income ratio and price of home, tax and interest rate in your area. The best thing to do, is contact a mortgage broker in your area and he will run your credit and let you know. I hope I was helpful.

Answer 10

I'd suggest 25% of your monthly take home pay on a 15 year mortgage. You can do a search on google for 'mortgage calculator' to determine what those specific numbers are.

Scott.....