Posted By |
Message |
teacherwheart
LIF Infant
Member since 3/06 347 total posts
Name: Tara
|
Trying to figure out if I can swing buying a house
I am sorry for yet another silly question but you all seem to know your stuff with regards to this house thing. I am trying to be realistic in buying a house. Without giving away personal information what is a good combined salary that a couple needs to make in order to live in LI? Right now we have about $50,000 and are looking at houses in the 400,000 450, 000 range. What do you think our combined salaries should be. We also have a baby on the way. I am sorry to be asking these questions I just need honest opinions.
|
Posted 7/20/06 2:35 PM |
|
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: Trying to figure out if I can swing buying a house
your mortgage payment should be no more than 30% of your gross monthly income
Message edited 7/20/2006 2:39:33 PM.
|
Posted 7/20/06 2:39 PM |
|
|
lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
|
Re: Trying to figure out if I can swing buying a house
Well - if you were to buy a 425,000 house - you would want to put down 42,500. Figure closing costs would be about $10k so you would need to save up a little bit more than that just to be able to afford the costs associated with the house. Also, this would leave you no money in savings, which could be hard.
With these numbers - your monthly mortgage payment would be about $2500 (at 6.75%), plus figure another $700 for taxes. That brings you up to $3200. then you need to determine how much extra you need for spending money and expenses. I would say $2500 extra would be a good amount - but depending on your situation (car payments, student loans, insurance, lifestyle, etc) you may be able to do it on more or less.... I think your pretax income, combined, would need to be about $110k.
I think I would also save up a little more if you can, prior to purchasing, so that you can put 10% down, and then still have some cushion for the surprise expenses that come along with owning a house.
Someone else will probably be able to provide a much easier answer to this question than i did though!
|
Posted 7/20/06 2:45 PM |
|
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name: Susan
|
Re: Trying to figure out if I can swing buying a house
only you know your comfort level with the payment.
If you are putting 10% down on a $400,000 house you are looking at a mortgage payment of about $2800-2900 with taxes with today's interest rates. DOn't forget you need to have $$ for closing costs...between $10-15K.
Think about the other expenses of a home. Oil or gas, landscapers, water, repairs.. I gathered all my expenses together and figured out what was realistic to be left with at the end of the month. That was my mortgage calculator.
|
Posted 7/20/06 2:46 PM |
|
|
lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
|
Re: Trying to figure out if I can swing buying a house
Posted by SweetestOfPeas
your mortgage payment should be no more than 30% of your gross monthly income
Wow - my long winded answer comes very close to this amount - $110k gives you a gross monthly income of $9,166 - 30% of that is $2750!
Also, you will get back about 25% of your mortgage and tax payments in income tax savings - so that would give you an additional $8 -$10k or so additional each year.
|
Posted 7/20/06 2:47 PM |
|
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name: Meaghan
|
Re: Trying to figure out if I can swing buying a house
A $400,000 loan at 6.875% over 30 years is $2655 a month. If property taxes are $8K, add $666 per month. and insurance, say $1200 a year, is $100 a month.
That results in a payment of $3,421.
Monthly income would have to be $11,403 (30% would be the $3,421), annually that is about $136K.
|
Posted 7/20/06 2:49 PM |
|
|
MrsSchwags
Soccer Baseball Lax Mom
Member since 10/05 11240 total posts
Name: Jennifer
|
Re: Trying to figure out if I can swing buying a house
Like said its really what you are comfortable with.
DH and I financed 103% of our mortgage, put the bare minimum down since we wanted money for renovations.
Our combined income without me working is less than 100,000.
I won't be working for a few months since I am due in 5 weeks.
However, we are renting out the upstairs to his brother since we won't need it right away and are getting $900 a month.
Still with that income we are under 100,000 and will be able to swing it. It may be tight at times, but honestly it isn't worth paying 2,000 a month rent with a baby on the way and two big dogs.
Message edited 7/20/2006 3:00:00 PM.
|
Posted 7/20/06 2:59 PM |
|
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name: Susan
|
Re: Trying to figure out if I can swing buying a house
Posted by lululu
Posted by SweetestOfPeas
your mortgage payment should be no more than 30% of your gross monthly income
Wow - my long winded answer comes very close to this amount - $110k gives you a gross monthly income of $9,166 - 30% of that is $2750!
Also, you will get back about 25% of your mortgage and tax payments in income tax savings - so that would give you an additional $8 -$10k or so additional each year.
careful with the tax refund calcs..it all depends on your personal tax liability.
|
Posted 7/20/06 3:07 PM |
|
|
lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
|
Re: Trying to figure out if I can swing buying a house
Posted by Blu-ize
Posted by lululu
Posted by SweetestOfPeas
your mortgage payment should be no more than 30% of your gross monthly income
Wow - my long winded answer comes very close to this amount - $110k gives you a gross monthly income of $9,166 - 30% of that is $2750!
Also, you will get back about 25% of your mortgage and tax payments in income tax savings - so that would give you an additional $8 -$10k or so additional each year.
careful with the tax refund calcs..it all depends on your personal tax liability.
It might not net you that refund depending on your personal circumstance, but you will still get the deductions thereby generating a nice tax savings......
|
Posted 7/20/06 3:09 PM |
|
|
SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name: Lauren
|
Re: Trying to figure out if I can swing buying a house
you really have to sit downa and figure everything out. remember gross income is not what you are taking home each week - so I don't really consider that a good way of figuring out things. We were in the same situation as you and sat down with a mortgage broker to see what actual payments would be. The number he came up with - the bank would be willing to give us the mortgage - but we knew that it would not be a realistic number for us with the other expenses we have each month. It was very disappointing for us, but now we know what we have to do in order to be able to buy a house in (hopefully) the near future. We were told on a $300,000 house and financing everything (including closing costs) and including the ins. payments, taxes, etc, our monthly payment would be about $2500.
|
Posted 7/20/06 3:22 PM |
|
|
~Colleen~
my loves...
Member since 5/05 9129 total posts
Name: guess
|
Re: Trying to figure out if I can swing buying a house
Posted by SweetTooth We were told on a $300,000 house and financing everything (including closing costs) and including the ins. payments, taxes, etc, our monthly payment would be about $2500.
Wow, that number seems awfully high.
ETA: Wait - I re-read that. Financing everything, as in not putting any money down? OK, I guess that makes more sense that the number would be that high.
Message edited 7/20/2006 3:30:15 PM.
|
Posted 7/20/06 3:28 PM |
|
|
teacherwheart
LIF Infant
Member since 3/06 347 total posts
Name: Tara
|
Re: Trying to figure out if I can swing buying a house
Oh god, this is a lot of work. LOL. Im just an elementary teacher and so not used to all this financial talk. I think my best bet is to sit with a mortage broker and get it all settled. Thank you all so much for you thoughts, I truly appreciate it all.
|
Posted 7/20/06 3:36 PM |
|
|
2kids2cats
My babies
Member since 6/05 5229 total posts
Name: f
|
Re: Trying to figure out if I can swing buying a house
I can tell you what our payments will be - we are in contract now.
Price $390,000 Downpayment - $50,000 Taxes - $8,200 Insurance - $85 Closing Closts - $13,000 Interest rate - 6.75
Our payment with mortgage, taxes and insurance will be $3,100 a month. Good luck!
ETA: Combined gross income is $124,000.
Message edited 7/20/2006 3:42:25 PM.
|
Posted 7/20/06 3:37 PM |
|
|