English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

We are interested in a house that we think we can get for $275k. We would put 20% down and have a 220k mortgage. This will be no problem with our dual salary, but we're thinking that I will stay home when we have kids in a couple years. What salary do you think is appropriate for a 220k mortgage? We need to know what my husband would have to make.

2007-07-21 06:50:09 · 12 answers · asked by Lauren M 3 in Business & Finance Renting & Real Estate

12 answers

It depends on how many other things you are financing. Student loans,credit card debt, or car payments would all factor in to your over all debt load per month. In the mortgage world it is your D.T.I ratio or debt to income ratio. The qualifying ratio for many loans is 50% although some sub prime loans allow higher ratios. So if you had a 220K mortgage on a 30 year term and 6% interest your payment would be: $1,319 per month plus taxes and insurance I'll estimate at $200 per month. So you can expect to pay around $1500-1600 per month if you get a standard 30 year loan. Take than # and double it to see what the minimum amount you need to make (gross) to qualify for this loan. Basically $3000 - to $3200 if you had no other debt. Just add the monthly payments of any other debt you have to your estimated mortgage payment and then double the total to see the minimum salary you husband would need to make.

2007-07-21 07:11:22 · answer #1 · answered by Anonymous · 0 0

I would agree on the 40% salary and be careful of accidents and illnesses so, I would opt for an agreement on insuranse to cover any of this. It would scare me to death to look at this mortgage every month.

Being in the contracting business, doing Real Estate these homes come up all the time in Vegas. You see a young couple move in, the wife quits to take care of the children. Then they buy some furniture, then a new car. Pretty soon you see a boat in the yard.
Then a dish on the house. Pretty soon the neighbors hear them fighting. It's always the same. Then the house is Empty, we get it, a mess, they leave everything and head for home, in another State leaving everything behind. I had more garage sales over this, got more new clothes and furniture then I needed because they just made a midnight move. It was happening two, three times a week.

Please Honey, be very careful, watch your "P's" and "Q's" and watch your budget, watch it very carefully. A big house is nice, a new house is fine but, you can start out small and work up also, think about it.

2007-07-21 07:06:53 · answer #2 · answered by cowboydoc 7 · 0 0

A 30 yr 6.6% mortgage of $220, 000 would have a monthly P&I payment of $1405.05. You will also have property tax and home hazard insurance payments. I'll make a guess (not knowing where you live) that an additional $450 a month would need to be set aside for the insurance and property tax.
That brings the total to $1855. Normaly your total monthly payments (car payments, student loan paymernts, etc. plus the $1855) should not exceed 35% of your monthly gross income. If you had no other debt payments to make, your husband should earn about $63,500 or so a year. Some lenders use a figure of up to 41%, which means your husband could earn $54,500 or more.

2007-07-21 08:02:23 · answer #3 · answered by skipper 7 · 1 0

Most banks will only allow 36% of your income for housing payments. This is strictly a estimate assuming will get a excellent rate. Your husband will need to make a minimum of 75-80k a year. Also this could vary depending on how much the yearly property taxes are. You can find this out checking with the tax department for your county & getting a quote from insurance companies on how much the insurance will cost. The income requirement could be more depending on the budget. Sit down & figure up the amount you will have to spend on kids monthly also so you're not in a squeeze on your house payment.

2007-07-21 07:07:35 · answer #4 · answered by J R 2 · 0 0

While there are all types of valuation methods and recommendations on how much house you can afford, what the 'experts' never tell you is it doesnt matter 'how much you make, it matters how much you have'. So i typically go with a term 'zero net debt'. If you have a 220k mortgage, work towards having 220k in net worth elsewhere (401k, IRAs, CDs, savings).. and while a lot of us take time to get to a sizeable net worth, you should consider staying home to have kids after reaching this goal, i.e. unless your husband's income alone gets you to that goal sooner. Needless to say - money you have in the bank is yours forever, but the same cannot be said about income from a job, etc... in the end, it all comes down to what you are comfortable with.

2007-07-21 07:02:16 · answer #5 · answered by AB 2 · 0 0

Paying the mortgage is not the only expense that will have to be covered by your husband's income if you decide to have kids. There is health insurance & cost of child rearing as well as property taxes and insurance which will continue to rise faster than income inorder to fund repairs resulting from the climate change we cause by using fossil fuels.
Having your only source of income from a job is also very risky as companies downsize as soon as they start having difficulties.
At a recent Millionaire Maker's Seminar I discovered that successful people had several income streams so could experience the life they wanted and treat the business set backs as learning experiences (each had average of 16 )before getting help to find their way to wealth.
It is possible to do something now and keep getting paid for it over & over in the future even if you do not work in the future.
Give Your Dreams a Chance to Be Happy in this Life

2007-07-21 08:31:22 · answer #6 · answered by Anonymous · 0 0

You've asked a question that is almost impossible to answer. Your mortgage payment alone will likely be in the neighborhood of $1,100/month. But you will also need to take utilities, property taxes, insurance, and general maintenance into account. Those can vary significantly from region to region. And they can change greatly with little or no warning. Plus you need to factor in the expense of having a child or children and be realistic about that expense. You have some homework to to.

2007-07-21 07:09:17 · answer #7 · answered by Tom K 7 · 0 0

since you will lose salary two when you are pregnant and not working, you must find a mortgage you can afford with one income.

the late larry burkett of crown.org says the mortgage payment should be no more than 40% of your monthly take home pay... this includes payment, taxes, utilities. everything.

2007-07-21 06:54:37 · answer #8 · answered by Anonymous · 0 0

Based on what you have stated and not taking into account what other expenses you might have, just the mortgage alone $220,000 based on current rate of 7.5 for 30 years the payment would run you $1,540 a month.

2007-07-21 07:27:25 · answer #9 · answered by Anonymous · 0 0

You should be making at least 50,000. With PITI you dont want it taken more than 45% of salary

2007-07-21 07:17:53 · answer #10 · answered by doc 2 · 0 0

fedest.com, questions and answers