Can I afford $250k?

Question

I currently make $65k/year, am single with no kids. I have no debts and my current monthly payments consist of $600 in car costs (payment, insurance, gas), plus food, clothing, etc. which are all adjustable. Can I afford a $250k townhouse/condo?

Answer 1

Ain't no way to answer this question without knowing $HOA$, $taxes$, $Down$, Credit Score, Interest rate, 401k/IRA contributions, or saving habits.

Answer 2

The definitive answer depends on a number of factors: your credit score, down payment and whether or not you qualify for homeowner programs like FHA/VA or first time homebuyer financing.

Those items aside, a $250K mortgage will likely cost $1600 per month. This does not include property taxes, insurance and maintenance for the house. Also, keep in mind that owning a house can also greatly increase your traditional living monthly expensive (i.e. electric, gas, even cable), so budget well.

I recommend you that you visit the bankrate site and plug in your information in the calculator. This should give you a good idea as to how much additional income you may need or how much house you can actually afford now.

http://www.bankrate.com/brm/calculators/mortgages.asp

Also, if you aren't on a budget now, start! You will need to be able to save for emergencies to protect against late mortgage payments and foreclosures.

Good Luck!

Answer 3

It depends on how large your payments are going to be. You didn't say how much you currently pay for rent. Your house payment will depend on how large your down payment is and on your credit rating. If you put down the typical 10% down payment ($25,000), your monthly payment would likely be about $2,000. Then there would also be homeowner association fees, likely around $200 to $300, for a total of $2,300 per month (not counting utilities). If that's about what you already pay in rent then, yes, you can probably afford the condo, but you need to work this out with a banker.

Answer 4

You don't say how much you have to put down, if you have an emergency fund, are contributing to your 401k and what sort of expenses your food, clothing and etc. are.

What I spend on food and clothing is probably drastically different than what you spend.

Purely speculation, but I don't think you can afford that much condo.

Answer 5

Also depends on your credit. The better your credit rating, the lower interest you will receive which means you can purchase more. That and your down payment.

Please, please, do NOT take out a variable rate loan.

Answer 6

Probably depends on how much you have for a down payment.

Check with your bank and see what they'll pre-qualify you for.

Answer 7

it definately sounds like you could! but it depends on the downpayment, the bigger the better. and try to get a nonadjustable