can i afford a 1 bedroom condo?

Question

at a salary of 41.000 paying out about 1100.00 in other expenses

the price of the condo would be about 120.000 at about 1100 .00 amonth in mortgage payments with taxes and isurance but can i swing any other bilss come come in electric cable tv phone and food

Answer 1

So this condo would increase your total monthly payments to $2200?

Let's take the standard tack... Most lenders want to see living expenses under 40% of your gross income. If you make $41k per year, then that works out to $3,416.66 a month. Thus, your proposed payments would equal around 35% of that gross monthly income.

Now, you do have to add it heat and 1/2 condo fees, at least here. Taking the full 40%, you have a total of $1,366.66 to use for living expenses, leaving $266.66 after your $1,100 payments. If your heat and 1/2 condo fees equal that or less, you should be fine.

The next question is, if you are paying $1,366.66 in living expenses, plus the other $1,100 in expenses you mention, that only leaves you $950 for everything else for the rest of the month. Can you pay for gas and food and whatever else on that amount?

And I am only talking gross income, before tax income. Your actual take-home pay is likely less than that, so you may be maxed out just paying your bills.

Take my math above and apply it to your actuall monthly take home pay and see how the numbers work. Remember, you can't eat on$3 a day. Nor can you eat and put gas in your car. Nor will you have a life.

I think you have enough to go on, see if you can swing it :)

Laurin Jeffrey
Jeffrey Team Real Estate
www.jeffreyteam.com

Answer 2

If the other expenses are credit card and car debt, then you need to get them under control before you buy. If the other expenses are taxes, food, and insurance, then you should be okay, depending upon the price of the condo and how much the loan costs you.

The HUD web site has publications that can help you figure the answer to your question. Go to http://www.HUD.gov and look for the HUD Special Information Booklet for Home Buyers. It's easy to read and a very good research source. You can trust it, as HUD is not interested in selling you anything.

Good luck!

Answer 3

Hey there, contact me if you would like a free prequalification. I'm sure we can work someting out.

Answer 4

yeah you can afford it depending on how much you spend in other things or allocate your resources