JackBurton
Lifer
- Jul 18, 2000
- 15,993
- 14
- 81
Well, yeah. Now that we are talking about $130K, that's ok - but the OP was asking about a $210K max. I may be focusing on the max price, but your number wasn't even included in the price-range given by OP ($160-210K).Originally posted by: dullard
1) He said $210k max - $10k down = $200k mortgage, $1000/mo for interest. You are correct that extras would add to that, so lets say $1600+/mo (still less than your $1800+). However he would never be approved for that number, so why use it in your post? You took the max number and ignored the minimum or our recommendations or what he will actually be approved for. A more realistic $130k house -$10k down = $700/mo interest. Add in $500/mo for the extras and we are at ~$1200/mo.
Assuming his homes never lose value, which is never a guarantee. Assuming the value stays the same, after 5 years, he'll have $7000 in principle equity, on top of his initial $10K down-payment, but he will have spent almost $50k in interest, on top of insurance and taxes.The math doesn't care how long he stays or how many houses he switches too. The principal still adds, and he can move that built up principal into the downpayment of the next house/houses. If he keeps buying houses for the same price that he sells his current house, then he'll have it paid off in ~30 years no matter how many houses he buys.
Yes, so WTF are we arguing about?Yes, we all agree not to overextend yourself.
Originally posted by: zebano
Way too much. An little story here. My wife got pregnant so we decided to buy a home.. I was making 47k/year, my wife is a substitute teach, so we dont plan on any money there (plus she would soon be a stay at home mom). We asked to be approved for 120k, the mortage company and real estate agent said "thats all"?
They are not on your side.
We eventually bought a 113k home and had a kid. on 47k, we were barely scraping by between child expenses and home expenses (it's hard to curtail your spending). Not only that but homes need constant maintenance. You may think that 700/mo for an apartment is a black hole, but consider this. I spend ~4 hours a week on the house, and my wife spends much more in general housework. Having a landlord who mows, shovels, fixes broken appliances etc. yields lots of free time and unbudgeted funds. It sounds like your young, start saving (both for a down payment and and emergency fund - save 10-20% of every paycheck, compounding is your friend), live it up and enjoy that disposable income (and free time).
Originally posted by: zebano
Way too much. An little story here. My wife got pregnant so we decided to buy a home.. I was making 47k/year, my wife is a substitute teach, so we dont plan on any money there (plus she would soon be a stay at home mom). We asked to be approved for 120k, the mortage company and real estate agent said "thats all"?
They are not on your side.
We eventually bought a 113k home and had a kid. on 47k, we were barely scraping by between child expenses and home expenses (it's hard to curtail your spending). Not only that but homes need constant maintenance. You may think that 700/mo for an apartment is a black hole, but consider this. I spend ~4 hours a week on the house, and my wife spends much more in general housework. Having a landlord who mows, shovels, fixes broken appliances etc. yields lots of free time and unbudgeted funds. It sounds like your young, start saving (both for a down payment and and emergency fund - save 10-20% of every paycheck, compounding is your friend), live it up and enjoy that disposable income (and free time).
Originally posted by: Amused
Originally posted by: Pacfanweb
Payment on 160k will be roughly 1000 a month, give or take, depending on your interest rate. If you get a good one, it'll be under 1 grand.
When considering a house payment you MUST consider insurance and property taxes.
Depending on where you live, that could add 300-1000 a month on a 200K house.
Then you need to figure the maintenance costs and the price of remodels/landscaping/decorating.
Just because you think you can afford the basic loan payment does NOT mean you can afford the true cost of the house.
At 40K a year, the most I would buy, if you were otherwise debt free, would be 120K.
Originally posted by: johnjbruin
WTF
You make 40K and take home 2600/month.
I make 60K and take home 3400 every month.
Are my taxes messed up?
Originally posted by: CTrain
Originally posted by: johnjbruin
WTF
You make 40K and take home 2600/month.
I make 60K and take home 3400 every month.
Are my taxes messed up?
Thats the first thing I was going to post.
NO fricking way bring home pay on $40K is $2600.
Gross income is $767/wk so you're lucky if you even take home $600.
And Georgia had state income tax.
I don't see how your take home is $2600 on a $40K salary.
Originally posted by: Ameesh
rule of thumb is around 4x your gross annual salary, in your case 5x is pushing it but if you get a roommate to help pay down the mortgage, i'd say go for it!
Originally posted by: armatron
Originally posted by: SagaLore
No. On 40k/year, you should stay below 100k house.
that is absolutely impossible around here. To get a house at that price I'm looking at an hour and a half commute at least to work
Originally posted by: dullard
If I were you, I'd have a definate cap at $160 and really consider something in the $130s. That way, you'll have plenty of money in case you want to have some fun, furnish your house, or get a new ___ WHEN the old one blows (fill in the blank with lots of items).
$150/mo for bike insurance seems like a huge amount of money. With a 6% interest rate, that $150/mo will buy you $30k more house. At 7% interest, that $150/mo would buy you $25k more house. (Note: numbers in this paragraph don't consider extra taxes or insurance).
So you effectively paid for a ~$152k mortgage. That is a lot different than a $192k mortgage. And I bet you didn't have much money for furniture or emergencies. Interest rates are quite important too in this discussion. With another year of rate hikes, Armatron will probably be looking at 7% interest. Note: you didn't mention yours, so it is impossible to compare your situation with Armatron's.Originally posted by: codeyf
We bought our $192k house when I was making less than 40k. However, we also put ~35k down, and because my wife was a BofA employee at the time, they paid $5k towards closing costs. We overpay towards our principal now, and pay an even $1400/mo.
Originally posted by: Mermaidman
Originally posted by: codeyf
We bought our $192k house when I was making less than 40k. However, we also put ~35k down, and because my wife was a BofA employee at the time, they paid $5k towards closing costs. . .
Big difference in your situation. What was your COMBINED income? I don't think the OP has a wife.
Originally posted by: Amused
Originally posted by: Pacfanweb
Payment on 160k will be roughly 1000 a month, give or take, depending on your interest rate. If you get a good one, it'll be under 1 grand.
When considering a house payment you MUST consider insurance and property taxes.
Depending on where you live, that could add 300-1000 a month on a 200K house.
Then you need to figure the maintenance costs and the price of remodels/landscaping/decorating.
Just because you think you can afford the basic loan payment does NOT mean you can afford the true cost of the house.
At 40K a year, the most I would buy, if you were otherwise debt free, would be 120K.
Originally posted by: Mermaidman
Just wait for the real estate bubble to burst. Seriously though, the housing situation is ridiculous for many people. The good thing is you're young and single--you don't need a house urgently.Originally posted by: armatron
Originally posted by: SagaLore
No. On 40k/year, you should stay below 100k house.
that is absolutely impossible around here. To get a house at that price I'm looking at an hour and a half commute at least to work