2007-03-01 02:18:05 · 7 answers · asked by dark_maiden1317666 1 in Business & Finance ➔ Personal Finance
20% of your net pay without taxes/insurance. About 25% with taxes and insurance. Also, put 20% down (or more) and do a 15 year fixed mortgage.
I know you didn't ask but been there done that, on zero down, dumb idea. I don't know if you are thinking about that road but I highly suggest you have savings. If you do a zero down it means you don't have savings to take care of the furnace or water heater, etc when it breaks. You should have at least 3-6 months of expenses (as an emergency fund) in the bank to cover the little hiccups with home ownership.
If you have all that, it sounds like you are ready for home ownership. (ALWAYS get a home inspection, always, always, always including termite/bug inspection.)
2007-03-01 02:35:34 · answer #1 · answered by mldjay 5 · 2⤊ 1⤋
To answer your question: The average mortgage company likes to see the mortgage payment (including taxes and insurance) is no more than 28% of your monthly income. There are multiple companies out there that do not have this stringent of a requirement. Almost all of them do have at least a 36% requirement.
On a slightly different note, I would recommend analyzing whether or not you can afford a house by looking at a 20 year fixed mortgage payment. BUT, I very rarely recommend actually getting this loan. That is a whole different subject. I would love to discuss your situation with you. Feel free to e-mail me through my profile (include "mortgage info" in the subject line).
2007-03-01 03:18:13 · answer #2 · answered by Anonymous · 0⤊ 1⤋
it depends on how much you're earning. If you buy a house for 200k and you earn 100k a year you might not have to spend a large amount, but if it is alot less then you obviously have to spend a higher percentage.
Seek advice from a financial adviser is the best thing to do.
2007-03-01 02:59:44 · answer #3 · answered by . 2 · 0⤊ 1⤋
You should be able to pay with less than one weeks salary.
Save money left over from that check for savings for a rainy day.
Don't get yourself in a jam. Sometimes less is more.
2007-03-01 02:32:29 · answer #4 · answered by dpeeeee 1 · 1⤊ 0⤋
Your supposed to be able to pay the house payment with one weeks check.
2007-03-01 02:27:19 · answer #5 · answered by tjmoore83102 2 · 1⤊ 0⤋
If you working it should be in the range of 30 to 35%
and if business..it will depend on ur savings/earning capacity
2007-03-01 02:23:11 · answer #6 · answered by WavEE 1 · 0⤊ 2⤋
The ideal amount should be 25% of your salary.
2007-03-01 02:26:22 · answer #7 · answered by Maria b 6 · 1⤊ 0⤋