My husband and I make around 115k together right now. What is the approximate price range we should be looking for? We have about 60k to use as a down payment and closing cost.
2007-07-18 14:45:51 · 10 answers · asked by Lauren M 3 in Business & Finance ➔ Renting & Real Estate
I would use a mortage calculator. It'll tell you what you can afford with no opinions-just the facts
2007-07-18 14:49:35 · answer #1 · answered by david c 3 · 0⤊ 0⤋
These are some decent answers but they arent the correct ones. I work for a Citibank and this is how it works. The bank will use a ratio which is called DTI or called debt to income. What they do is they divide the amount of total monthly debt you have against the total monthly income you generate before taxes. This includes a full mortgage payment, taxes, and insurance. So when you total all this up it has to equal 45% or below. Here is an example
Total monthly bills:$50
monthly property taxes:$350
monthly insurance:$100
monthly mortgage payment: $3800
Total:$4300
Income:$10000
DTI:43%
Therefore you need to find out what is your credit score and what rate you qualify for. Lets say the best rate you can get is 7%. If you bought a house for $600000, your mortgage payment would be $3991 a monthly which would easily qualify you. Email me back if you want more info
2007-07-18 22:32:11 · answer #2 · answered by dg8499 2 · 0⤊ 0⤋
The idea is to have a life and not only work to payoff your mortgage, you will have multiple answer but the most common will be take your income and subtrac all the montly expenses this number should not be over 45% of your income that will be a conservative limit that the lenders call DTI or back end ratio, this number will determin what kind of loan program will you get.
There are multiple factors to consider about 7 more I just answer one if you want or need addtional information feel free to send me an email.
I am a mortgage broker in Orange County California but I lend monye in all 50 Estates
Good luck
2007-07-18 21:56:54 · answer #3 · answered by myloanagent 1 · 0⤊ 0⤋
With your down payment, the largest house you want to get is $300,000. Usually you can get the seller to pay all or most of the closing costs for you and that leaves the total $60,000 as a 20% down payment on your house. Also, since your combined income is quite high, you would be able to afford the other bills that come with owning a house.
2007-07-18 21:50:31 · answer #4 · answered by Andrea B 3 · 1⤊ 0⤋
If you have no other debts or payments, for a family with an income of $115k signing a conventional loan is approximately $430,000. See this website calculator for more information and good luck!
http://www.ginniemae.gov/2_prequal/intro_questions.asp?Section=YPTH
2007-07-18 22:01:10 · answer #5 · answered by Chad M 1 · 0⤊ 0⤋
Only YOU can make the decision as to how tightly you want to pinch yourselves with a mortgage payment compared to your income/take home pay.
All I can tell you is that a lot of mortgage brokers/lenders can get you approved to buy a home which will let you only enough money left over after making your payments to buy yourselves a luxurious Friday night out at McDonalds.
Determine for yourselves what amount of money you feel comfortable paying out on a monthly basis for mortgage, insurance, and property taxes. Then go to bankrate.com and use their calculators to find out what price range you can buy based upon your comfort levels.
2007-07-18 21:57:24 · answer #6 · answered by acermill 7 · 0⤊ 0⤋
i think you are asking the wrong question -- you should be asking your self how much home to i want -- i can tell you right now even in the most high price area you will be able to buy a fairly expense home - but here again unless i was planning on retiring in the house i would never stick 60000 down on a house. you are tying up a lot of money when you may want to move in less than three.
2007-07-18 21:56:07 · answer #7 · answered by mister ed 7 · 0⤊ 0⤋
One of the best online non-bias mortgage tool I found to research finance data is Mortgage X.
Skip the advertisements for all the companies and go to the bottom of the page to use their mortgage trend history, indexes and surveys.
You will be amazed at all the data that they have compiled.
To your success,
Kendall E. Matthews, CRMC
2007-07-18 22:00:06 · answer #8 · answered by Kendall Matthews 1 · 0⤊ 0⤋
Financial planners suggest that your total monthly expenditures directly related to the purchase of your home (mortgage, insurance and taxes) not exceed about 28% of your gross monthly income. Read this article for more insight.
http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/Don'tBiteOffTooMuchHouse.aspx
2007-07-19 01:20:24 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I would prefer you to use mortgage calculator but in my opinion like up to 700k.
2007-07-18 21:51:09 · answer #10 · answered by PoKrzyWa 2 · 0⤊ 1⤋