How much income must I make to own/mortgage a $400,000 home? (I'll be lucky to even find one that cheap in New York City, unfortunately.)
2006-12-26 13:16:36 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
$140,000? Are you sure? $400,000 is considered cheap in New York City. The average home price here is $500,000 and up, and I don't think everyone makes over $100,000?
2006-12-26 13:49:25 · update #1
Probably around $120,000.
2006-12-26 13:19:17 · answer #1 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
There are mortgages which allow people to "state" their income, meaning their actual income is never actually checked. This type of mortgage usually requires a solid job history and excellent credit. Perhaps some of the people you know living in homes beyond their income have mortgages like that or they have interest only mortgages, adjustable mortgages or another type of mortgage which allows them a lower payment, therefore allowing them to qualify with lower income. On a standard mortgage, your debt to income is best if it is lower than 41%. To see how much of a home you would qualify for, check out your lenders/bank website or go to sites like these, bankrate.com, realtor.com, usbank.com or any other mortgage website. You shouldn't have to enter any identity information, only some your income and bill figures. Hope this helps.
2006-12-26 14:03:52 · answer #2 · answered by amy23 3 · 0⤊ 0⤋
Usually your house payment should not be more than 25% to 30% of your monthy income. In other words, if your take home pay is $5000. per month then your house payment should not exceed $1500 per month which would allow you to buy a house for $200,000. So double that for a $400,000 house.
2006-12-26 14:18:56 · answer #3 · answered by Anonymous · 1⤊ 0⤋
In rentals and in mortgage, the percentage ususally runs about 35% or for a $400,000.00 home, about $140,000. Keep in mind that doesnt include taxes, insurance, food, or utilites.
2006-12-26 13:40:36 · answer #4 · answered by kimmamarie 5 · 0⤊ 0⤋
Here let me make this less confusing....
After a 20% down payment, with good credit the monthly housing payment will be $2,000 more or less.
banks want 28-30% ratio so you have to make at least $85K
...give or take
2006-12-26 15:40:02 · answer #5 · answered by Skywalking 3 · 1⤊ 0⤋
Your best bet is to go to a mortgage calculator online and plug in your income/debt info and it will tell you the max loan you can afford.
You can find a calculator at:
http://www.bankrate.com/brm/rate/mtg_home.asp
2006-12-26 13:19:43 · answer #6 · answered by LC 2 · 0⤊ 0⤋
140.000?
prob....
2006-12-26 14:32:02 · answer #7 · answered by cork 7 · 0⤊ 0⤋