I am looking for a formula that will give me the price range I should be looking at based off of my annual salary of $100,00 per year.
2007-08-13 05:00:41 · 5 answers · asked by chrchll129 3 in Business & Finance ➔ Renting & Real Estate
There is one rule of thumb and one more complicated formula.
Rule of thumb is between 2-3x your annual salary, so between $200,000 and $300,000 would most likely be OK. Rules of thumb are just that and could vary significantly depending on many factors (downpayment amount, credit score/history, other debt, etc.)
The better calculation is the 28/36 rule. This means that no more than 28% of your gross income should go for your housing payment. In your case that is about $2300 per month. That is usually referred to as PITI (principal, interest, TAXES and insurance). Principal and interest are dictated by price of home, rate on mortgage, size of downpayment, etc. Taxes and insurance vary greatly by region, so look at it closely.
The 36 part of the rule is that all of your debt payments shouldn't exceed 36% of your monthly income (in your case ~$3000). This means any car loans, credit card payments, student loan payments, etc.
The 28/36 rule will keep you reasonably happy about your debt load. Banks used to use this ratio and were strict about it. In the past 5 years or so, they seemed to relax quite a bit and now that is coming back to haunt them, so I would imagine that it is returning to these types of standards.
Good luck!
2007-08-13 06:42:02 · answer #1 · answered by Rush is a band 7 · 0⤊ 0⤋
How large a wedding? How many in the wedding party? Try this as a gauge: Arrangement Average Cost Bridal Bouquets $100-150 Bridesmaids Bouquets $50-90 Flower Girl $30-60 Bouquet Basket - Head wreath - Pomander - Corsages 15-20 Wrist - Pin-on - Boutonnieres $10-15 Altar Arrangements $50-150 Pew Décor $8-50 per pew Place Setting $10-30 Arrangements Head Table Centerpieces $75-150 Guest Table Centerpieces $30-100 Toss Bouquets $25-40 Cake Flowers $25-100 @ edit Emily to save some money for the guest table centerpieces tink of this: Now for a money saver Guest tabel arrangements can cost $35 to 100 each. Your caterer can probably rent you large clear glass bowls bigger the a soup bowl smaller then a punch bowl. One for each tabel under $5 each. Then use the web site I'm giving you and purchase 1 case of Unscented Ball Floating Candles 24 for about $60. (always unscented candles around food) Buy some food coloring to color the water or some plastic flowers or colored marbles for in the bottom of the bowl(optional). The candles will burn for 10 to 12 hrs. You've cut your cost from $35 - $100 to about $10 per tabel. they're elegant and unique. there is no clean up because the caterer will clean them up, just make sure they are glass not plastic because of the flame.
2016-05-21 06:31:45 · answer #2 · answered by ? 3 · 0⤊ 0⤋
There is more to the formula than just the price of the house. What is your credit rating, do you have other debt etc. There are affordable mortgage calculators all over the internet. bankrate.com has one.
2007-08-13 05:08:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I have heard your mortgage payment should be about what you bring home in one week OR the house should be priced at your incomeX 3 years so that would be $300,000 for you.
2007-08-13 06:36:05 · answer #4 · answered by jon jon's girl 5 · 0⤊ 0⤋
I think it would better for you to suggest a mortgage payment you are comfortable paying every month, rather than throwing your yearly income at us. There are calculators on-line that offer different ways to approach affordability. See below
2007-08-13 05:14:29 · answer #5 · answered by linkus86 7 · 0⤊ 0⤋