How much money will i have to make a year to afford a $300-350,000 home in South East MI?

Question

Does anyone know what kind of income i would have to have to afford this? Also having to pay tax, cars, insurance etc. Thanks.

Answer 1

Only you can truly answer this question. What you need to do is figure out your budget now, and what your down payment would be on a house.

Then, armed with this information, you need to visit .. oh, I don't know... most realtor web sites have a little mortgage payment calculator where you plug in the down payment and number of years you want to pay on a home, and the amount you would want to finance.... and see what that tells you in terms of what the payments would be.

Then you take that amount back to the budget and see what you can do with it, in terms of whether you can comfortably pay that amount in payments every month. Also allow for real estate taxes and closing costs, as well as at least $3000 in repairs/renovations once the deal closes.

Btw, you'll want to get a fixed-rate mortgage if at all possible, because the adjustable-rate ones usually only adjust upwards, making the payments jump considerably.

Answer 2

I would check a financial calulator to see what it comes up with. Also I would not let your debt income ratio be over 25-27%, this is on the conservative side but it offers you some security in your finances. Also the amount of income needed for a home varies with your down payment. If you have less than 20% down the bank could force you into having private mortgage insurance.
Here is a calculator you cna play with to see what income you would need http://cgi.money.cnn.com/tools/houseafford/houseafford.html

You would need an income in the mid 90's in order to afford that home if you had no other bills at all. I can not make a better estimate since I do not know what your taxes, car, insurance amounts are.