ok im 26 and me and my wife earn 125,000/year. can i support a 400,oo0 loan for 6 months (or until i sell my home) and a 300,000 loan for as long as it takes to pay it off?
note i have to other major expenses other than paying that off.
2006-10-07 11:03:44 · 7 answers · asked by legendaryfrog 3 in Business & Finance ➔ Renting & Real Estate
You make slightly over $10,000 per month. A paper lender's guidelines say 45% of your gross is your maximum approvable debt service.
Since a thirty year fixed can be had around 6% without any points, (maybe 5.5 with 2 or 3 points, if you really want to pay points), and assuming you are putting 20% down to avoid splitting the loan or PMI, that works out to $2398.21 per month payment at 6%. Taxes around here on a $500,000 purchase run roughly $525 per month prorated. Insurance I'll estimate $110 per month. Total: a little over $3000 per month. Since you can go to $4500, it doens't even look like a strain unless you've got payments that you said you didn't have.
2006-10-07 15:15:57 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
That depends. You realise you will be servicing 700,000 worth of debt for 6 months. That's a lot even if your earning 125,000/yr. If you and your wife have kids, cars that aern't paid for, credit card debt, etc. then I wouldn't recommend it.
2006-10-07 18:16:37 · answer #2 · answered by Nate 2 · 0⤊ 0⤋
A quick look at the numbers indicates that you would be able to handle both payments, however, you need to get with a trusted mortgage advisor and discuss your options and strategy that will work best for you and help you grow your net worth.
This site has many free reports that will most likely answer most of your questions. www.paynotaxesforlife.com
2006-10-07 18:23:19 · answer #3 · answered by Pay No Taxes For Life 2 · 0⤊ 0⤋
With the market being what it is these days, I say sell your home first, then buy something. 700,000 is a lot of debt, even with a 125,000 annual income.
2006-10-07 20:21:53 · answer #4 · answered by hirebookkeeper 6 · 0⤊ 0⤋
You can answer this with a little time, start with filling out a budget. It is very possible! If you like I can send you an excel budget form I use myself and for my clients.
2006-10-07 19:01:10 · answer #5 · answered by Dave C 2 · 0⤊ 0⤋
so which is it? are you twelve as it says on your page, 36 as you say the other time you posted this question, 26 as stated above, or do you know how old you are?
2006-10-09 21:29:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
looks like there is way too much that could go wrong here, personally i would not chance it.
2006-10-07 21:28:57 · answer #7 · answered by jimmy dean 3 · 0⤊ 0⤋