Total income $83,000. After payment leftover cash will be $1400 a month. is that okay?
2007-10-02 15:52:19 · 3 answers · asked by RadeDude 1 in Business & Finance ➔ Renting & Real Estate
The rule of thumb is that you can afford to pay 30% of your annual income on housing. Formula is Income X 30% = answer X 12. so....
$83,000 X 30%= $24,900 X 12= $298,800
That home much you should be able to comfortable afford.
2007-10-02 16:30:31 · answer #1 · answered by young2bballin 2 · 0⤊ 1⤋
I wouldn't bet on it. Your debt to income ratio is WAY off. The P&I on an 80% loan for a $176,000 home is only $845.36 on a 30 year loan at 6%. Your total debt service should be less than 35% including your loan. Yours is around 80%. Even without the loan, it's still over 67%. Not sure what you're spending your money on, but you need to cut a rather massive amount of debt to get anywhere near close to qualifying for a mortgage at a reasonable interest rate.
2007-10-02 23:29:48 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Wow are you missing some details! LOL. Go visit a mortgage calculator on-line and plug in your variables. That will be your best source of free info on-line. Other than that, consult a mortgage broker with your specific situation.
Try and keep your debt to income ratio well below 50%. Or in other words, take your total recurring monthly debt (including mortgage) and divide it by your gross monthly income ($6,900 in your case).
2007-10-02 23:08:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋