If i want t buy a house for around 200k how much money should i have saved for down payment,closing costs,etc?

Question

I have 0 debt, good credit and make about 60k a yr.This will be my first house

Answer 1

Well, the general rule of thumb is that your house should cost between 2x and 3x your annual salary. This would be somewhere between $120k and $180k. That would indicate that a $200k house is a little out of range for you.

That said, ideally you would put down 20% on a house to avoid PMI (private mortgage insurance that protects the lender). This means you would need ~$40k to put down. Figure another 5% for closing costs (which really depends on local real estate taxes, etc.) for another $10k. Ideally, you'd have $50k set aside.

Now let's be realistic. That probably isn't the situation that you are in. A better guide is no more than 28% of your gross income should go for your housing payment. 28% of $5000 per month is $1250. That $1250 needs to cover your principal, interest, taxes and insurance (PITI) per month. Unless you live in a really low tax area or really can put down 20% you are going to feel stretched in that house! Don't forget that utilities will be much higher in a house than an equivalent apartment!!

Good luck!

Answer 2

at least 20 percent of the house cost so you won't have to have PMI insurance. it will save you alot of money

Answer 3

Sorry, but the answer is 'it depends'.

Read this:
http://michaelbluejay.com/house/basics.html