|
|
|
|
Thread Tools | Display Modes |
02-13-2007, 02:03 PM | #1 |
Scooby Specialist
Member#: 74412
Join Date: Nov 2004
Chapter/Region:
MAIC
Location: Bucks County, PA
Vehicle:2016 Impreza WRX STi white |
Whats the best way to figure out the mortgage you can afford?
I currently rent at $1250/mo and am selling my car, so I could pay up to $1750/mo and still be comfortable.
Problem is I have no idea what that translates to in terms of mortgage. On average, can I afford a 200K mortgage? More or less? Does anyone know the best way to figure a rough estimate?
* Registered users of the site do not see these ads.
|
02-13-2007, 02:07 PM | #2 |
Scooby Specialist
Member#: 87294
Join Date: May 2005
Chapter/Region:
South East
Location: Wanna fight ab'at it?
Vehicle:98 Silver POS |
http://partners.leadfusion.com/leadf...ome01/tool.fcs
Fool with the numbers till you get what you want. |
02-13-2007, 02:07 PM | #3 | |
Scooby Newbie
Member#: 67942
Join Date: Aug 2004
Chapter/Region:
International
Location: I come from the Land DownUnder
Vehicle:The Other Land Down Under |
Quote:
They'll look at your credit history etc and they will likely have a limit (%) of your gross income that would limit the amount they would lend you. |
|
02-13-2007, 02:10 PM | #4 |
Scooby Specialist
Member#: 42714
Join Date: Sep 2003
Chapter/Region:
Tri-State
Location: Apalachin, NY
Vehicle:'07 BMW 335i E90 |
Less than 36***37; of income
IBWRXVTsaysthatsnotenough |
02-13-2007, 02:11 PM | #5 |
Scooby Specialist
Member#: 74412
Join Date: Nov 2004
Chapter/Region:
MAIC
Location: Bucks County, PA
Vehicle:2016 Impreza WRX STi white |
^36% before or after tax?
|
02-13-2007, 02:12 PM | #6 |
Scooby Guru
Member#: 99289
Join Date: Oct 2005
|
The "rule of thumb" I've heard for first time homebuyers, is that after taxes, insurance, mortgage, etc; you should expect to pay 1***37; of the value of the house every month. Now Determining if you can afford that is a question of risk you are willing to take. Some people will suggest that you spend up 50% of combined income on monthly payments, where I would take the conservative and do 1/2-1/3 of a single income.
YMMV |
02-13-2007, 02:13 PM | #7 |
Scooby Specialist
Member#: 12391
Join Date: Nov 2001
Chapter/Region:
NESIC
Location: YER.MOMS.A.HAIKU.AND.HERES.WHY
Vehicle:I did her 5 times then 7 times, then 5 more |
|
02-13-2007, 02:14 PM | #8 |
Scooby Specialist
Member#: 42714
Join Date: Sep 2003
Chapter/Region:
Tri-State
Location: Apalachin, NY
Vehicle:'07 BMW 335i E90 |
|
02-13-2007, 02:42 PM | #9 |
Scooby Newbie
Member#: 68193
Join Date: Aug 2004
|
Take into account property taxes, PMI if you don't have 20***37; to put down, association dues if it's a town home, and home owners insurance.
|
02-13-2007, 02:56 PM | #10 |
Scooby Specialist
Member#: 3400
Join Date: Jan 2001
Chapter/Region:
South East
Location: Boca Raton, FL
Vehicle:2016 Red Pirate Cat 1981 CJ-7 |
You should really do a search on this. Not being an ass, but this is well covered material and you will find lots of info.
Get used to the term PITI. Stands for Principal, Interest, Taxes, and Insurance. Most planners estimate that all that combined shouldn't be more than 28-33***37; of your monthly gross income. If you make a lot of money than you could probably spend a larger percentage of your gross income on PITI, than if you make less. There are lots of online mortgage calculators that you enter the home price, interest rate, tax rate, est. insurance payment and it will calculate monthly PITI for you, and even give you an idea on how much income you need to be able to afford it in general terms. Let's say you put 20k down and are financing 180,000 of a 200,000 house: At a 30 year 6.5% mortgage, your monthly PI payment is $1137.72, add your local property taxes and insurance payment and there's your monthly PITI. |
02-13-2007, 02:57 PM | #11 |
Scooby Newbie
Member#: 45400
Join Date: Oct 2003
Chapter/Region:
RMIC
Location: Denver, CO
Vehicle:06 WRX TR OBP |
Buying a house you can actually afford is so oldschool!
|
02-13-2007, 03:00 PM | #12 |
Scooby Specialist
Member#: 74412
Join Date: Nov 2004
Chapter/Region:
MAIC
Location: Bucks County, PA
Vehicle:2016 Impreza WRX STi white |
^I dont know what I would do if I bought a house I couldnt afford... it would suck.
|
02-13-2007, 03:01 PM | #13 |
Scooby Specialist
Member#: 17979
Join Date: Apr 2002
Chapter/Region:
MAIC
Location: NOVA
Vehicle:335i Blue |
|
02-13-2007, 03:10 PM | #14 |
Scooby Newbie
Member#: 73416
Join Date: Oct 2004
Location: PA
Vehicle:05 CTS-v Stealth Grey |
Add up all your current bills (except rent/mortgage and power of course), expenses for food, gas, entertainment you will not give up, amount for savings, etc. Then add at least $100 a month more savings for that furnace or roof you will need soon. From what you have left subtract the average homeowners insurance payment, and power for the house your looking at (different for everyone); what is left is what you can afford.
|
02-13-2007, 03:15 PM | #15 |
Scooby Newbie
Member#: 13772
Join Date: Dec 2001
Chapter/Region:
RMIC
Location: -=OT SQUIRREL HERDER=-
Vehicle:16 Frontier Red |
Don't forget to calculate how much montly utilities will cost in the house. Utilities bills can very greatly from one house to the next. Also realize you'll need things like yard equipment, furniture, etc.
I assume this is your first house. I'd suggest looking into if your state has any special programs for first time home buyers. |
02-13-2007, 03:18 PM | #16 |
Scooby Specialist
Member#: 125978
Join Date: Sep 2006
Chapter/Region:
NESIC
Location: Shrewsbury, MA
Vehicle:2002 WRX Wagon Silver |
A good mortgage broker should be able to tell you ways to avoid PMI. In our case, we got a 80/15/5 mortgage. The benefit is that we needed only 5% down to get into the house. Both mortgages are at a fixed rate, with the 15% one at a higher rate. Interest on both mortgages is tax deductible (AFAIK PMI isn't). The downside(?) is that we can't take out a line of credit/home equity loan, but the upside is that the total bill is less than if we had financed 95% and put down 5%, and had to pay PMI.
Also, if you have PMI you might be able to make it go away early if you can demonstrate that you have the required equity in the house, from appreciation, for example. There are other splits that can be done depending on your situation, and in some situations you may be better off going with the loan+PMI. |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
What is the easiest way to take out the bottom 2 19mm bolts on struts? | jaytheman | Newbies & FAQs | 47 | 02-02-2010 12:01 PM |
I figured out one of the best ways to keep your subs from moving | Un0RiGiNaL | Car Audio, Video & Security | 17 | 02-21-2009 10:24 AM |
droped some small particles in the engine chamber what the best way to take it out? | 949 | Factory 2.5L Turbo Powertrain (EJ Series Factory 2.5L Turbo) | 6 | 06-15-2007 11:01 PM |
Whats the best way to get out of a lease? | V6TurboTA | New England Impreza Club Forum -- NESIC | 26 | 03-02-2004 10:48 AM |
Best way to pop out the side markers. | mrtrex | Interior & Exterior Modification | 3 | 09-16-2002 01:29 PM |