My brother is building a house well beyond his means. I am also looking to buy a house myself, however, within a threshold I can afford. Every opportunity my brother has he boasts about the luxurious home him & his wife will being living in. Example of the boasting: He asks me how many square feet will you have?" I state about 1,700 - he replies "My basement is 1,700 feet". Furthermore this dream home is $400,000 with the combined salary of him & his wife being $115,000 per year. With these salaries and no money given from parents -is this something he can even afford?
2007-01-29 01:14:20 · 4 answers · asked by Billy Jack H 1 in Business & Finance ➔ Renting & Real Estate
Hang up on him. If all he wants to do is brag, let him tourment someone else.
2007-01-30 09:45:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
With a combined salary of $115k p.a, your brother can affrod a house btw $350k - $550k.
They may have also got a great financing deal....e.g. figure that the payments due during the construction period are interest only then converting to an adjustable rate mortgage with interest only for X years adjusting to P&I for X years......
They may also have little other personal debt so they can afford a little more in a higher mortgage.
2007-01-29 09:20:23 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
Mortgage brokers/lenders will make sure he gets into the house. Personal experience has taught me that there is more to homeownership that just the mortgage payment. Lenders do not care if you can afford groceries........
2007-01-29 10:23:01 · answer #3 · answered by Sharingan 6 · 0⤊ 0⤋
Based on the limited info you gave us, he can probably afford it. Assuming he doesn't have a lot of other debts, his credit is good, and RE taxes are reasonable, he should be okay with a $400k purchase.
2007-01-29 09:58:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋