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Started By
Message
My mortgage - FML
Posted on 10/9/12 at 11:46 pm
Posted on 10/9/12 at 11:46 pm
Let me have it guys. Im a single guy, very stable employment, no wife/kids.. this is a brand new 3bd 2 bath home in a nice neighborhood.
My question is: what would you say my net monthly income (minus 401k and investments) should be to be living like this?
Mortgage is $1280 a month
10/04/12 MTG INS PMT $192.28 $187,969.71
10/01/12 PAYMENT ( Details) $1,280.76 $187,969.71
09/03/12 MTG INS PMT $192.28 $188,258.56
09/02/12 PAYMENT ( Details) $1,280.76 $188,258.56
08/03/12 MTG INS PMT $192.28 $188,546.51
08/01/12 PAYMENT ( Details) $1,280.76 $188,546.51
07/27/12 MTG INS PMT $0.01 $188,833.57
07/04/12 MTG INS PMT $192.28 $188,833.57
07/01/12 PAYMENT ( Details) $1,280.76 $188,833.57
06/03/12 MTG INS PMT $192.27 $189,119.73
06/01/12 PAYMENT ( Details) $1,280.75 $189,119.73
05/10/12 PAYMENT ( Details) $1,018.47 $189,405.00
05/10/12 NEW LOAN SET-UP $189,405.00 $189,405.00
My question is: what would you say my net monthly income (minus 401k and investments) should be to be living like this?
Mortgage is $1280 a month
10/04/12 MTG INS PMT $192.28 $187,969.71
10/01/12 PAYMENT ( Details) $1,280.76 $187,969.71
09/03/12 MTG INS PMT $192.28 $188,258.56
09/02/12 PAYMENT ( Details) $1,280.76 $188,258.56
08/03/12 MTG INS PMT $192.28 $188,546.51
08/01/12 PAYMENT ( Details) $1,280.76 $188,546.51
07/27/12 MTG INS PMT $0.01 $188,833.57
07/04/12 MTG INS PMT $192.28 $188,833.57
07/01/12 PAYMENT ( Details) $1,280.76 $188,833.57
06/03/12 MTG INS PMT $192.27 $189,119.73
06/01/12 PAYMENT ( Details) $1,280.75 $189,119.73
05/10/12 PAYMENT ( Details) $1,018.47 $189,405.00
05/10/12 NEW LOAN SET-UP $189,405.00 $189,405.00
This post was edited on 10/10/12 at 12:00 am
6
Posted on 10/10/12 at 5:35 am to YogaPants
how much debt/bills do you pay each month (car note, insurance, student/personal loans, credit cards, cell phone)?
ETA: safe scenario: if you gross more than your mortgage a week then go for it. $67k/year. im no financial advisor but this should give you enough room to save if something comes up
ETA: safe scenario: if you gross more than your mortgage a week then go for it. $67k/year. im no financial advisor but this should give you enough room to save if something comes up
This post was edited on 10/10/12 at 5:57 am
Posted on 10/10/12 at 8:31 am to YogaPants
I would say you would need to net 4500 a month. Which would be a job making about 73k. $192 MTG Insurance pmt? Damn thats high.
Posted on 10/10/12 at 10:02 am to YogaPants
Assuming T&I are included in the payment, no or very cheap car payment, somewhat frugal lifestyle = > $71k. $2300/yr for mortgage insurance is crazy. Whatever you do, build up a cash reserve fund of 9-12 months if you do not have one for unforeseen house and other expenses.
Posted on 10/11/12 at 3:03 pm to YogaPants
Total Mortgage payment = 28% of gross income
Total monthly debt (mortgage + all other monthly debt, e.g. car, credit cards, etc.) = 36% of gross income
Plus 20% cash down payment
My family runs a large savings and loan and this has been the rule for all their mortgages since 1928, and this is why they have been in business since 1928 and have had zero defaults since 2008. Any federally chartered savings and loan will use the same ratios. Commercial banks getting away from sound lending risk analysis (largely by demand of the government) is why we had the mortgage crisis in 2008.
You need to include everything in your mortgage payment (PITI = Principal + Interest + Taxes + Insurance, plus the PMI you are paying) to do this calculation right. You just included principal + interest + PMI, but no taxes or insurance.
If you cannot afford the total mortgage costs at 28% of gross income, you have no business buying a house.
You are going about the process all wrong, and you are essentially buying a car based on the monthly payment, rather than the cost of the car. No one should buy a house based on the monthly note alone, and the fact you include PMI means you have little to no down payment, which means you have decided to spend your money thus far in life rather than save money responsibly to prepare for home ownership.
Instead, try starting with how much you make and spend every month, add in ALL the costs of the house, then add your car note, then take an honest look at where you are spending your money each month.
If you're too poor to meet the 28%/36% numbers, then work harder/smarter to make more money and save your money for a down payment instead of trying to be a "$30,000 millionaire". If you're over the 28%/36% number, you're not ready to own a home and will be flirting with financial ruin shortly.
I'm giving the purely financial side but, all this aside, it's okay not to own a home and I think the intrinsic value of owning versus renting is vastly overrated, especially since 2008 and given the cost of insurance in Louisiana. There are far better places to invest money than putting it into a house, which is really a liability that takes money out of your pocket, not an asset.
Total monthly debt (mortgage + all other monthly debt, e.g. car, credit cards, etc.) = 36% of gross income
Plus 20% cash down payment
My family runs a large savings and loan and this has been the rule for all their mortgages since 1928, and this is why they have been in business since 1928 and have had zero defaults since 2008. Any federally chartered savings and loan will use the same ratios. Commercial banks getting away from sound lending risk analysis (largely by demand of the government) is why we had the mortgage crisis in 2008.
You need to include everything in your mortgage payment (PITI = Principal + Interest + Taxes + Insurance, plus the PMI you are paying) to do this calculation right. You just included principal + interest + PMI, but no taxes or insurance.
If you cannot afford the total mortgage costs at 28% of gross income, you have no business buying a house.
You are going about the process all wrong, and you are essentially buying a car based on the monthly payment, rather than the cost of the car. No one should buy a house based on the monthly note alone, and the fact you include PMI means you have little to no down payment, which means you have decided to spend your money thus far in life rather than save money responsibly to prepare for home ownership.
Instead, try starting with how much you make and spend every month, add in ALL the costs of the house, then add your car note, then take an honest look at where you are spending your money each month.
If you're too poor to meet the 28%/36% numbers, then work harder/smarter to make more money and save your money for a down payment instead of trying to be a "$30,000 millionaire". If you're over the 28%/36% number, you're not ready to own a home and will be flirting with financial ruin shortly.
I'm giving the purely financial side but, all this aside, it's okay not to own a home and I think the intrinsic value of owning versus renting is vastly overrated, especially since 2008 and given the cost of insurance in Louisiana. There are far better places to invest money than putting it into a house, which is really a liability that takes money out of your pocket, not an asset.
This post was edited on 10/11/12 at 3:31 pm
Posted on 10/11/12 at 4:20 pm to YogaPants
delete
Posted on 10/13/12 at 9:45 am to YogaPants
(no message)
This post was edited on 11/29/12 at 3:08 pm
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