2007-01-12 04:10:51 · 7 answers · asked by John G 1 in Business & Finance ➔ Renting & Real Estate
There is way more to consider than how much you bring home per week.
1. Monthly debt (credit cards, car loan, school loan payments) Your mortgage should not be more than 28% of your income AFTER DEBT (You need to take out your loans and stuff from your income before you can do what that last guy said about 25-30%)
2. How much money you have to put down (This will lower your monthly payments)
3.The intereset rate for the mortgage you are approved for. (this is major, it could be a difference of hundreds of dollars a month) Always shop for the best deal (you can get a mortgage for less than 6% if you try hard enough, I just did 3 months ago)
4. You need to consider your mortgage term. (the longer the term, the less you pay per month, but the more you end up forking out in the end.)
5. Closing cost (this could be upwards of 6-7000 dollars (you can look into what is known as a sellers concession for this and finance your closing costs, but it will raise your monthly payment a little)
6. Local Real Estate taxes (where you live could beat the crap out of you on taxes. e.g. Bergen county NJ's average annual real estate taxes are about 11,000 dollars/year. where Sussex County NJ is 3000 dollars/ year.
I'm sorry if i made this complicated for you, but a house is a MAJOR purchase that can't be taken lightly. Go to this website to do the math: http://www.mortgagecontent.net/scApplication/fanniemae/affordability.do
Also, check into a local home ownership class. These are normally put on by no-profit organizations for first-time homeowners. If you are in NJ, email me and I can tell you who to go to, Otherwise, Im not sure if i can help. campbery@yahoo.com
2007-01-12 04:39:04 · answer #1 · answered by campbery 2 · 0⤊ 0⤋
Typically,"they" say (whoever "they" are) that your rent or mortgage shouldn't be more than what you bring home in one week. You have to consider all the other bills too,so don't get yourself in too deep. Good luck!
2007-01-12 04:21:12 · answer #2 · answered by Terri R 6 · 0⤊ 0⤋
Rule of thumb is about 25 to 30% of gross income, so about $1,140 + or - a few dollars.
2007-01-12 04:24:18 · answer #3 · answered by Brite Tiger 6 · 0⤊ 0⤋
some lenders would ask you for 50%.... other for 45% and some others for 40%
it depends on what kind of loan you want.....
further questions
fnfssandoval@yahoo.com
2007-01-12 05:00:38 · answer #4 · answered by Sergio S 2 · 0⤊ 1⤋
the way i figer it is one wks. check if you can pay a pay ment with one wk ch. then you can afford that as a payment figer from there. good luck!
2007-01-12 04:17:47 · answer #5 · answered by ready 2 play 1 · 0⤊ 1⤋
$1372.00 per month
2007-01-12 04:16:18 · answer #6 · answered by kathy059 6 · 0⤊ 0⤋
1/3 usually... dont come to MA!! lol...
2007-01-12 04:18:28 · answer #7 · answered by momof3 5 · 0⤊ 1⤋