Hi I live in Oklahoma, and I have recently made an offer that was accepted on a house for $133,000 dollars. I make $40,000 per year. I am putting 10% down on the house, P & I will be 790 per month. Do you think this it too much house for a person like me? I am single, and I have wanted a house all my life.
2007-07-29 16:55:31 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
My only other debt is a small car loan that I pay $114 per month towards...
2007-07-29 16:59:48 · update #1
Most lenders want you to have a debt to income level of less than 35%, 25% is better. Assuming your take home is 2800/month that would mean:
2800 net income
904 debt=33.7%
So you are okay there. It should also be more afordable than it first appears, because roughly $800/month of your housing expenses (inclutding property taxes and insurance) will be tax deductable, which will drastically cut down on your state and federal income tax, maybe change it to zero tax.
So from a financial aspect, I think you are fine. i wouldn't go any bigger, though.
2007-07-29 17:07:00 · answer #1 · answered by rlloydevans 4 · 1⤊ 0⤋
Buy the house, as long as you are not doing any type of creative financing that might come back to bite you in the end (pun intended).
The fact that you have 10% to put down sounds like you may have a good grip on your finances. You can never go wrong buying a house as long as you are able to afford the payments.
You are fortunate to be living in a part of the country where things are affordable. If you were in California you wouldn't even think twice about such a purchase at that price.
Buy the house and enjoy!
2007-07-29 17:14:47 · answer #2 · answered by YOGAQUEEN 1 · 0⤊ 0⤋
Last I heard, a general rule was that the house payment should not exceed one week's salary. You do the math. Sit down with pen and paper and list all your expenses. Include daily living - food, utilities, etc.; semi-annual like car insurance and homeowners, annual like taxes, etc. - then see how it looks. Don't forget, you should keep some money in reserve for an emergency. Hot water tanks, roofs, furnaces, seem to pick the most inopportune time to go on the fritz.
2007-07-29 17:02:34 · answer #3 · answered by TheHumbleOne 7 · 0⤊ 0⤋
bad choice anything over 100 too much maybe make another offer for 125k thats a little more realistic
2007-07-29 18:25:15 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Thankyou all for your replies and opinions.
2016-08-24 10:17:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋