is a house payment of 1260.00 per month normal if we make 85,000.00 per yr.?

Answer 1

The payment for your mortgage is based on the original loan amount, not your income.
You can go here: http://financialplan.about.com/od/creditanddebt/a/DebtIncomeRatio.htm
and calculate your mortgage plus other expenses to see if it is too much.

Answer 2

If the $1260/month includes principal, interest, homeowner's insurance, and property taxes, then you're definitely fine - this only represents 18% of your gross income. You could actually afford up to another $1000/month, assuming you don't have a lot of other debt. I suspect you're not including property tax in the $1260, so find out what that will be.

You'll probably have to be careful about two things:
1) If this is for anything except a fully amortized fixed rate loan (e.g., an ARM, interest only loan, etc.), you'll want to know how much your payment could adjust upward.
2) If you're counting on two incomes, anticipate your situation if you only had one (e.g., wife stays home to have a baby).

These two things can dramatically change affordability. Lenders used to want to limit your total house payment to only 28% of your gross income, maybe 33%. I'd say you might be able to afford up to 42% of your income, but above that it gets really tough. Good luck.

Answer 3

To figure this out, you figure out your annual housing payment (1260 x 12), which is 15,120.00. Then you calculate what percentage of your income that is. 1260 a month for your mortgage is almost 18 percent of your income. Most financial advisers would consider that very modest. If it seems like too much money, you might want to look at your other expenses. If you are considering moving to a larger or otherwise more expensive place, don't let the percentage rise above 40%.

Answer 4

I NEVER go by what society calls the norm.

If you want to be financially independent and not worry about money then you need to have a home that is only worth 2 years of your income. Many disagree with this concept but then they will be the ones working till they drop dead to pay the mortgage and the maintenance.

As soon as people STOP living beyond their means, the sooner they will have a better life but you cannot tell these people this for they do not want to believe it. It is their CHOICE, we all get to make the choices with in our lives regarding our finances. I simply choose to HAVE money rather than spend it all.

aaaaaaaaaaagh life is good !!!

Answer 5

A good rule of thumb is that your house payment should not exceed 25% of your income. If it does.. then you probably have too much house.

Answer 6

do you have a one week take home pay of 1260? yes then you are doing good. No then you are doing what the bankers love to do, get you into too much of a loan.
visit daveramsey.com to learn what the bankers pray you never ever learn before you get burnt.

Answer 7

It depends on what else you spend your monthly budget on. Car pymnts, way of life, and other things you dont think of. Everyone is different.