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I know I've posted more than once about this but need reassurance

Z

zixxer

Diamond Member
I make 40k. I do ~4-5k on the 'side' (under the table) in computer work. I have 6-7 clients and I don't plan on 'growing' the side business.


The houses I'm looking at are ~$150-155k. This results in a montly payment of around $1300 inc. taxes and pmi etc.

This doesn't 'seem' not doable. I have very little debt (I bought a sportbike earlier this year...) no credit debt and my car is paid off.....




am I being ridiculous? The girl I'm dating is offering to pay $300 a month if I let her live 'with' me.. so she isn't paying her $300 for a finished basement-apartment deal she has.... but if something happens to us I'm paying that full $~1300. I could also consider having a roommate but REALLY dont want another roommate. I've been burned 2-3 times already
 
Seems like it would be tight, depending on cost of living etc.

I make about 30% more than you and recently bought a condo for 180k (10% down of my own money, 10% home equity loan). Its definitely livable, but I am not awash in money either. For what it is worth.
 
Originally posted by: rsd
Seems like it would be tight, depending on cost of living etc.

I make about 30% more than you and recently bought a condo for 180k (10% down of my own money, 10% home equity loan). Its definitely livable, but I am not awash in money either. For what it is worth.
Click to expand...

hmm.... ok... we're in somewhat similar situations I suppose. do you have car payments etc?


 
Here's an idea.

Live with her for awhile in the $300 a month apartment. Pay off the bike and save up for enough down payment to eliminate the PMI. That stuff eats your equity and more.

That $1300 is a big nut to break every month, but your own house is one place it can make sense to take such a risk. Try to get rid of the PMI and it could make the difference.


Jim
 
How much money are you paying in rent? How much are you saving each month?

Savings + current rent needs to be greater than mortgage + taxes + pmi + utilities + house insurance

That will be more useful than your income as far as your comfort level goes.
 
i dont think its doable. at 40K you're bringing home about 2200 a month? you're not going to be able to save much at that rate, and you should have significant savings in case anythin ghorrible happens...just my .02
 
definitly but something that you and only you can afford...then if she moves in or u get a room mate the extra $ will be a bonus. if u buy according to what else u will get with the latter then u will be burned
 
if the payment is >43 % of your monthly take home pay(i think, i can't remember, it's in this range though), then you probably will have a hard time even getting the loan.

sooo, i don't know what your monthy take home pay is after taxes, so figure it out
 
I have a lot of friends who are new to the house situation. Most have a roommate living in the basement. Usually a friend or recommended roommate, nobody random, that's just not a good idea if you ask me.

Money from the live-in girlfriend would also be good, and I think a smart thing to have her do. It does cost money afterall to have more people using utilities and wear-and-tear on the house and furnishings.

Also beware the "under the table" income. That 4-5k is pretty high to not be telling the tax man about it. I hope it's all in cash. Otherwise it could come back to haunt you.
 
make a note of what type of heating your going to have.
electric and gas come monthly but not oil.
so figure in if u can deal with it on a monthly schedule like all other utilites
or u can deal with a big payment when ever delivery will be
 
Originally posted by: armatron
I make 40k. I do ~4-5k on the 'side' (under the table) in computer work. I have 6-7 clients and I don't plan on 'growing' the side business.


The houses I'm looking at are ~$150-155k. This results in a montly payment of around $1300 inc. taxes and pmi etc.

This doesn't 'seem' not doable. I have very little debt (I bought a sportbike earlier this year...) no credit debt and my car is paid off.....




am I being ridiculous? The girl I'm dating is offering to pay $300 a month if I let her live 'with' me.. so she isn't paying her $300 for a finished basement-apartment deal she has.... but if something happens to us I'm paying that full $~1300. I could also consider having a roommate but REALLY dont want another roommate. I've been burned 2-3 times already
Click to expand...

Get the house, get a roommate, but be extremely picky about who you get. Even make concessions on what they are paying if they turn out to be easier to live with then other people. Trust me, good roommates are out there.

Because it is your house, when you buy it, you are in control of the situation, so you probably won't have those @$$hat roommates from before.... Either that, or it is you who is hard to live with.
 
Easily doable. Don't forget that you'll get a huge tax deduction thnanks to the interest on the mortgage...that might mean a couple thousand extra a year.

I have a house and two kids, so I changed my tax withholdings to 9 and I still end up with a tax refund. 🙂

In any case, if you discover you can't quite make it, you can always pick up a roomate or tough it out for a full two years and then sell the house and pocket the equity it built.
 
No offense, but are you posting this same question every week or what? I distictly remember this whole thread about how much house you think you can afford, your yearly salary, debt, etc.

Was there no conclusion from that thread?


edit: Also, please tell me you edited your title and I'm not just blind. 🙁
 
Originally posted by: armatron
I make 40k. I do ~4-5k on the 'side' (under the table) in computer work. I have 6-7 clients and I don't plan on 'growing' the side business.


The houses I'm looking at are ~$150-155k. This results in a montly payment of around $1300 inc. taxes and pmi etc.

This doesn't 'seem' not doable. I have very little debt (I bought a sportbike earlier this year...) no credit debt and my car is paid off.....




am I being ridiculous? The girl I'm dating is offering to pay $300 a month if I let her live 'with' me.. so she isn't paying her $300 for a finished basement-apartment deal she has.... but if something happens to us I'm paying that full $~1300. I could also consider having a roommate but REALLY dont want another roommate. I've been burned 2-3 times already
Click to expand...


Unless you are putting $20K down, your monthly payment is going to be more like $1500. A good rule of thumb, is your monthly payment with taxes insurance and all that is 1% of the purchase price.
 
Originally posted by: cKGunslinger
No offense, but are you posting this same question every week or what? I distictly remember this whole thread about how much house you think you can afford, your yearly salary, debt, etc.

Was there no conclusion from that thread?


edit: Also, please tell me you edited your title and I'm not just blind. 🙁
Click to expand...

no it was like that when i made the thread. I'm trying to get 'unbiased' opinions from people... rather than them reading the entire thread of people's responses and posting something based on that
 


Unless you are putting $20K down, your monthly payment is going to be more like $1500. A good rule of thumb, is your monthly payment with taxes insurance and all that is 1% of the purchase price.
[/quote]

I don't see how you come up with 1500, my house payment is 1374 a month and my house was 170,000 and I put 0 down. interest rates may be a tad higher now (I think mine was 5.5) but still his payments should be less than mine for a 15k-20k less house.
 
Originally posted by: MixMasterTang


Unless you are putting $20K down, your monthly payment is going to be more like $1500. A good rule of thumb, is your monthly payment with taxes insurance and all that is 1% of the purchase price.
Click to expand...

I don't see how you come up with 1500, my house payment is 1374 a month and my house was 170,000 and I put 0 down. interest rates may be a tad higher now (I think mine was 5.5) but still his payments should be less than mine for a 15k-20k less house.[/quote]


That sounds a little high to me too, but if he's paying PMI he's also paying a higher than average interest rate. These two items can combine to meet or exceed equity, which makes the buyer upside down in time. As I understand it PMI is charged when the loan is over about 80% of assessed value. You may have got a good deal or a higher assessment. Also a "tad higher" interest rate makes an amazing difference.


Jim
 
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