I have to do a project for my class and I don't know what income I need to afford my house. I earn $117,730 a year and my house cost $100,000.Can Someone Tell Me My Income or Tell me how to do it?
2006-11-24 05:44:26 · 3 answers · asked by Denzel S 2 in Business & Finance ➔ Personal Finance
The rule of thumb is that annual mortgage + real estate taxes shouldn't exceed 30% of your annual income. If you go to an online mortgage calculator (try bankrate.com) and assume that you've put down 20% ($20,000) on your house, you'll see what your monthly and annual costs will be, and you will see whether they exceed 30% of your income. I strongly suspect that you will easily be able to afford this house, but check to be certain. You didn't mention real estate taxes, but you can assume that on a $100,000 house they won't be more than $1,000/year in most parts of the country.
2006-11-24 06:04:22 · answer #1 · answered by Born in Bost 1 · 0⤊ 0⤋
Your house payment should not run more than 25-30% of your monthly earnings.
2006-11-24 13:50:15 · answer #2 · answered by Flyby 6 · 0⤊ 0⤋
if i were you i would try to get some loans from the bank
2006-11-24 13:49:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋