If you made $143,000 a year, how much would you spend when buying a house?

Question

jw

what if later down the rode you made $183,500 a year?

Answer 1

There is a lot of unknown information i.e. credit score, other monthly payments (car or credit cards) and what your comfortable while maintaining a decent cash flow for any unexpected repairs. In a perfect scenario (no other bills and 720+ credit score) you could use almost $6000 for your mortgage. The easiest way to figure out the max you can use towards your mortgage is calculate 50% of your monthly gross income minus and major bills. I would guess anywhere between $350k-450K is what you should qualify for. I strongly recommend that you contact a mortgage broker as they have hundreds of lenders and programs that will fit your needs. A mortgage broker can typically get you a lower interest rate than you can get by walking into your local bank as they have buying power. I hope this helps you and gives you an idea, however if you need any help or have any further questions please feel free to email me [e-mail].

Answer 2

You should spend about 20% of your income on rent/mortgage. So $143,000 per year is about $12,000 per month (not including taxes, etc). Assuming you are maxing out your 401K savings (which you should), that would be about $107,000 per year or $2100 per month. If you take into account your taxes on this amount, it is probably closer to $6900 per month (actuals may vary according to how many children or dependents you have). 20 percent of this is $1380 per month. So you can spend this amount on housing costs. If interest rates are at 6% for a 30 year mortgage (I haven't checked lately), that would come out to a $230,000 house. Some people are a bit more agressive and allocate 25% of their income to housing, so you can buy a $300,000 house (but don't forget real estate taxes and school taxes which would turn 20% into 25%).

So good luck and enjoy that home. I hope you don't live in California or New York, because those numbers can't buy much of a house. In any other place, you can buy a mansion for those numbers.

I do agree with iiuva (although not with the ethnic stereotype). It depends whether you view your home as an investment or as a place to live. If you view it as an investment and you can always find a similar paying job in the same area and the area you live in has had steady real estate value growth, then you can be more aggressive. If you view your home as a secure place you want to be able to live in until you die, you have to be more conservative.

Also, don't trust financial service folks. They always recommend that you buy more than you can afford. The more you buy, the more they earn. If you can't make payments, it is your problem since they can always take your home.

Answer 3

Enough of a house for my family to be happy in, enough for my needs, and no more.

The rest I would put into other property and other investments.

It's okay to buy the house with the extra bedroom for an office and a pool and a rumpus room. But there's a point at which the money is better put to making more money elsewhere.

True wealth is measured by how long you would be able to go without working, not all the stuff you've got. I love my profession, but if you don't have to keep working, nobody can make your life unpleasant.

Answer 4

it depends, becuase if u make 143,000 a year, u have pay the escrow and keep adding money so u can beat the other buyer, that is if only u like the house. Other than that the monthly payments, house tax payments, and money u give a month, part of it, sometimes most of it goes to the interest.

Answer 5

It depends!

Yeah, that's not the answer you're looking for, I know, but you have to factor a lot of things in and even then it's completely subjective. Of that $143K (or $183K) how much are you currently saving? How much of that savings would you want to invest in your home? What is your tax bracket? (That helps you determine how much of a deduction you get from your mortgage payments.) How much debt are you comfortable carrying? What sort of interest rate can you get, how long do you plan on staying in the house, etc. etc. etc.

Talk to your realtor and a good mortgage broker in your local area. Or, better yet, a financial adviser!

Answer 6

Around 450000, hope fully u dont like to shop, go on vacation alot. But when i bought my house i only made 98000, and my house is the second biggest in the block, 5 bedrooms, 3 restrooms, 1 dinning room, 1 study room, 1 living room, a 4 car garage, and a big *** back yard.

Answer 7

Like any jewish person will tell you .. YOur house should not be worth more than 10% of your revenue...

Figure out your monthly revenue.. and calculate 10%... that should be your mortgage payment,,,

That's what makes Jewish people so successful... they are smart in business and other areas..
Take care...

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Answer 8

You could manage $800,000 over 30 years with a decent interest rate, but you would need a 10% (or 20%?) downpayment.

Answer 9

$286,000. You shouldn't EVER spend more than 2x the amount of one years salary. This is a recipe for hyper-consumption and can damage your savings in the long run.

Answer 10

6 million