What kind of house can you afford
- 0Feb 20 by HHN2472I have been saving a while and know nothing about the reality of home ownership. Those of you making around $25/hr working a 40ish hour a week job... what can you afford comfortably? I know that areas of the country matter and I am down South. Just curious. I really don't have any home owning friends and the ones who do are not in my pay scale.
- 10Feb 20 by elkparkYou can go to your bank and ask to talk with a mortgage officer; that person can plug your income, savings, and debt into a computer algorithm, and talk with you about how much you could afford to spend on a house, how good a position you're currently in to qualify for a mortgage, and any other questions you may have.
- 7Feb 20 by Ruby VeeI live in a modest townhome myself. We love the area and are quite happy here. DH has friends who make far less money than we (we're both nurses, the friend is a paramedic and his wife doesn't work) who own a four bedroom home WAYYYY out in the suburbs. They're constantly on the verge of foreclosure. He has a colleague (also in a McMansion) with a two hour commute and who is dependent upon overtime to keep up with his mortgage.
I think the key is to live within your means and make up your mind to be happy where you live. But elkpark is right about the bank and the mortgage officer. Do that BEFORE you talk to a realtor. Then if you see the house of your dreams at your first open house, you'll be ready to make an offer.
- 0Feb 20 by Ruby VeeQuote from Ella26Yeah. It gets worse. He got fired from his job and had another opportunity in New Mexico -- but they couldn't sell the danged house!That is truly scary that, "He has a colleague (also in a McMansion) with a two hour commute and who is dependent upon overtime to keep up with his mortgage" and "Constantly on the verge of foreclosure." Wow... is all I can say.
- 1Feb 20 by Don1984If you are on you own and renting an apartment, then determine if you are content with that amount each month. Bankrate.com has a mortgage calculator to determine your monthly payment for the amount you want to borrow. Keep in mind that when you buy a house that you also have pay property taxes and homeowner's insurance which will increase your monthly housing payment.
- 1Feb 21 by TheCommuter Asst. AdminIn 2003, I was a 22-year-old factory worker with an income of about $39k yearly. That year I purchased a $146k house in central California. I put $14,600 (10 percent) down, and with an interest rate of 5.75 over 30 years, ended up with a monthly payment of $867. I did not include the property taxes or homeowner's insurance into my mortgage. If so, my payment would have been in the neighborhood of $1100 monthly.
The property surged in value due to the speculative real estate bubble of 2005, so I sold the house that year for $260k, cashed out and moved to Texas where I began my nursing career.