I know circumstances are different for everyone but ... on average?
That breaks down to about 3,300 a month ...
idk. i'm just thinking here.
any insights from homeowners or clever people are appreciated. ; )
2007-06-26 02:22:29 · 8 answers · asked by Natalie M 3 in Business & Finance ➔ Personal Finance
Natalie,
Of course you are correct that there are alot of variables.
However if we assume no money down, and that you live someplace with moderate property taxes, then your payment will be about 1250 each month. My house was within a thousand dollars of what you listed. That's about my payment. Right now, interest is very low, and that will help but your payment can always be estimated at about 1% of the price of your house.
Generally, most sources of financial advice will tell you to keep your house payment at 25% or less than your take home pay. This house would be about 1/3 of yours - or 33%. You will also have repairs and other upkeep to consider.
The bottom line is: it would be tight. You can do it, and there's no doubt that you can find a lender that would approve it if you credit is decent, but it will be tight.
So - the decision will be that if you get the house, do you want to be careful with other stuff - restaurant meals, car payments, trips, and stuff like that.
If it were me, and I were you, I'd write down a budget. Don't forget anything, because if you underestimate, and your outgo is even a tiny bit more than your income, you will end up in trouble over time. I mean - put down birthday and Christmas costs averaged out, pocket money for vending machines at work, dog food if you have dogs, make an estimate at car repair and put in an average for that each month, and so on. Keep in mind that your car today won't last forever and you'll need to replace it - probably before you move again. Make sure that you put in an unlabeled 10% 'slush' fund for problems - about 300 bucks. You may not need it tomorrow or next month, but at some point in the next year, the slush fund will save your keister and you'll thank God you did it.
If you get your budget done, and you think you could swing a 1250 payment, with about 300 extra for emergencies of whatever type, repairs, and other unanticipated issues, on top of your other expenses, then, you'll probably be fine.
If you are in the hole on paper, you will definitely go in the hole in real life. I am sorry if this is bad news, but I hope the numbers work out. One thing that can make a huge difference is renting a room to someone - hopefully a friend. A nice room w/ house privileges should go for around 5-600 bucks.
Good luck with it - Kevin
2007-06-26 02:39:44 · answer #1 · answered by Kevin 6 · 0⤊ 1⤋
Depends on your credit score , which determines your % rate . . . will yours be high or low ?
Also , how much will you put down ? If less than 20% ($25K) , you will also have PMI added to your monthly payments ,
So your montly will be the principal + % (depending on your score) + taxes + insurance and possibly PMI if you don't have the $25,000 .
Ask several lenders to do a prequalification letter for you (those are free) .
That will let you know where you stand % rate wise and if you can afford it .
Also save that 20% down and never have to pay PMI.
Good Luck !
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2007-06-26 09:36:41 · answer #2 · answered by kate 7 · 1⤊ 0⤋
A lot of bankers use a formula that your mortgage should be no more than 3-5 years salary.
At lease, before the bankers realized that if you overstretched yourself, they'll be collecting interest payments for life, and they'll still be able to keep the house.
2007-06-26 09:32:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your principal and interest payments will be about $800 per month, plus monthly property taxes and insurance. That will represents about 30% of your gross income. Don't know what other debt load you are carrying, so that's hard to judge, but if you're not grossly into other debt, you should be able to manage well on that.
2007-06-26 09:28:49 · answer #4 · answered by acermill 7 · 2⤊ 0⤋
Its according what else you pay , The House will run around 1200
a month for 30 years
2007-06-26 09:31:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
OMG - NO! You need to find more income. Could you rent out part of the house?
Good luck! :)
2007-06-26 09:27:43 · answer #6 · answered by searching_please 6 · 1⤊ 1⤋
don't forget that it won't just be payments, but any fix it projects or emergencies that come up as well...
2007-06-26 09:26:00 · answer #7 · answered by Chickenfarmer 7 · 2⤊ 0⤋
I AM DOING IT RIGHT NOW. ANYTHING IS POSSIBLE IF YOU WANT IT BAD ENOUGH AND CAN BUDGET.
2007-06-26 09:24:51 · answer #8 · answered by snowbdrpunk 2 · 0⤊ 0⤋