Mark S, JPAA
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I took a look online, and you can afford (in theory) between $635.60 and $749.10. |
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komputergryl
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FHA = 41% Debt to Income ($1107 PITI)
CONV = 36% DTI ($972 PITI)
SUBPRIME = 50% ($1350)
Keep in mind these are just standard numbers that depend greatly on your total picture.... such as you may have a great score but do you actually have a 2 year history with at least three trade lines? How long have you been on your job? How long have you been making that level of income? Does that include bonuses or overtime? These are just a sample of questions that can make a difference.
And I have no idea where people come up with that 30% rule of thumb nonsense.... and how would I know? I just happen to be a mortgage broker in California for the past 10 years. |
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Steveo
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Go to this website
http://mortgagedirect.wachovia.com/cgi-bin/world/start.pl?opt=login&dbvia=bls&source=2&nojs=false&script=world/calcindex.pl
of course if you want a $ figure, under various scenarios, you will pay out $810 for principal and interest, for about $140000 in mortgage. |
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jakenyr
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You'll be looking good... Should be able to get something around 150,000 or up. Most mortgage companies will get you pre-approved and tell you how much your approved for and give you an approximate interest rate (although you can't lock down the interest rate until you have a property), and what payments to expect. |
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Jason J
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Here's a neat little calculator to use:
http://www.mortgage-calc.com/mortgage/howmuchborrow.html |
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katielovestony
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my hubby makes a little less than that,and we have a mortgage of $80,000. you should work it into a budget and see what you can afford. you can figure the payment to be $100 for every $10,000 of your mortgage.however much you want to spend is really up to you.i've never seen a lender who doesen't want to loan more than you can afford.they don't care...they aren't going to be paying for it every month. good luck! |
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broccoli brain
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If a lender will allow you to use 50% of your income for the payment ( $1350) using a scenario of 30 years to pay off and an interest rate of 6-1/8% (6.125%) and allowing $50 per month for insurance and $100 per month for taxes you could borrow approximately $197,495.00. The principal and interest would be 1200/ month and the total payment PITI (Prin, Int Tax and Ins) would be $1,350.00.
Now if you have any money saved, the purchase price could be higher by however much you put down on the property. A borrower can get the very best interest rate if they put 10-20% down on the purchase price creating equity in the property.
This scenario is just an example. Every loan and purchase will be different. |
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Mel
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I wouldn't go more than ¼ of my salary and the job would have to be secure with opportunities for advancement. |
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joburgslim
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I see you have received replies with links to online amortization (loan) calculators. Become familiar with this and understand the cost of interest over 30 years.
You didn't state age or whether the $2700 is gross or takehome pay. I'll assume first time buyer and thus young, late twenties or so, and $2700 gross monthly income.
How much you can afford is an answer only you can figure out based on your priorities. First of all, owning a home is great and recommended. So this is a good step to contemplate. Now hear this: Realtors and mortgage brokers will likely try to talk you into "being able to afford" lots of house. This serves their interests and not yours.
Decide on your lifestye and your likelyhood of staying put in one place, and then select a home that will work for that. That is how much you should spend, regardless of how much you can afford. A bank or broker will pre-qualify you, and that is how much you can afford. This is a good process to go through and i recommend it. What I am trying to say is, don't necissarily feel you should buy all the house you can afford.
By pushing your lifestyle to the max, i.e. nice house, nice cars, nice clothes etc. you will likely not be saving, or worse, you could be living beyond your means and this is a recipe for lots of hurt.
Out of all the luxuries in life a great home is the most sensible, so go ahead and max out, but then be very disciplined and drive a piece of junk and shop at thrift stores.
If I had life to do over (I don't and have made many mistakes) I would save like crazy till I had 20% down payment, and I would have finance my first house with a 15 year mortgage. If you can swing that you will be financially well set one day, a lot sooner than anyone else you know.
Bottom line, a broker or realtor who is trying to get you to buy a house with more than $900 PITI (payment that includes Principle, Interest, Tax and Insurance, i.e. your mortgage note) is not helping you, they are helping themselves.
Good luck and have a blast in your new home. |
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zobyjade@sbcglobal.net
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Your home mortage payment should no more than one weeks income. |
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Ms Betty
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Your question asked what could you afford for a house mortgage? I see a lot of questions that were directed on how much could you afford a house for, how much could you qualify for, and how much would be a reasonable amount you could afford regardless of what you qualified for.... which is an important question seeing how so many "qualified" but really couldn't afford it and have lost or are losing their homes now.
I think Komputer had the best qualifying answer, Mel had the best answer regarding being sure you have security for the unexpected and changes in your life, and Jakenyr seemed to have the best answer regarding a little of both payment and the house price.
Just remember you have to be able to make the payment and comfortable with it for a long time so regardless what a loan officer tells you or the advice you get online.... make sure it is the right decision for you and your life! |
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chris h
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You dont really have enough info there to figure it out. How much is the electric, gas, water, etc. bills in your area. Then there is Taxes, and they are different depending on where you live. Is 2,700 before or after taxes?? Sorry not enough info to give you a good guess. |
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qwerty
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Mortgage companies will give you a max. mortgage of 30% of your income. So your max payment per month would be $810. Depending on interest rates and everything that comes out to be around $100,000 home. |
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Cirric
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Hi. That is a good credit score but you still have to negotiate for the lowest rate. Prices are coming down and houses are getting harder to sell, both good for the buyer. How much? Depends on what you are willing to give up and for how long. I would think about $1200 US. |
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Goonhilda
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Banks like your repayments to be no more than 30% of your income. For you that would be about $180- 200 per week. That would be a mortgage of about $115 000 or $120 000 at interest rates around 8-9%.
It's best to overestimate your repayments and not borrow too much. Save for as long as you can so you don't have to borrow a large amount. Then you can make more extra payments and get rid of the mortgage sooner. |
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kjsouder@sbcglobal.net
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30% is the rule of thumb. But, it doesn't account for taxes, insurance, repairs and maintenance. No more than $600 per month. You can't afford it. |
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mr. y
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its tough.a lot of people forget about the little things like garbage removal,taxes,maintenance,etc.all those little things that add up .on that kinda money i would say a mortgage around 900 dollars is pushing it. |
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railroad dave
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gross or net ? find a house 2.5 times yearly take home pay , put down 20 % , mortgage the rest . or wait a year , prices will be down 40 % due to the major depression we are heading into . |
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GSD PAL
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http://finance.realtor.com/homefinance/calculators/mortgagequalifier.asp?lnksrc=FINCALCINDHA001&poe=realtor |
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wiremu
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$1200 /month tops |
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bg.hard
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go to a bank, they will tell you exactly how much, they will figure in taxes, utilities, your income taxes, your refund, increased earning power, and everthing else. a general rule of thumb was 25=30 percent of your income. but with the tax laws, and increase of utilities it is changed. talk to a lender, |
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