Help determining how much mortgage I can afford

Not sure how much this helps but...

I bought a condo for $130k. Currently make about $10k less than you (before your raise). Payment is $500 a month (put about $28k down) and it nowhere near cripples me (also pay $324 HOA). I'd say depending on your down payment you can probably afford any of the houses you're looking at.

You need to look at both what you can afford to pay now, and what you could afford to pay when life changes down the road

I would figure you are paying all the bills, because there is no guarantee down the GF will still be around.

Same thing if married and possibility of wife staying home with future kids. Only buy want you can comfortably afford on just your salary

I was in a similar situation when we bought our first home.

At that salary range I was bringing home about 2400ish a month after taxes.

I had more debts than you, and was supporting my wife while she finished school. It was very tight all the time, and I didn't ever put any money back.

You also have to consider other bills, on a $700 mortgage payment expect all housing bills to tally around $1100 with power, internet, cable, tv, water, etc.

This calculator is very, very simple to use. It's almost abacus like. It's my secret weapon I used for year's with customers.

Dr. Karl's Mortgage Calculator

My wife and I work and combined we're around $80K/year. I'm the bigger earner and the "typical" theory I used to give to clients was to triple your annual household income and that was the MAX you could afford.

For me that would be $240K and I can assure you I'm not touching that much housenote with a 50 foot pole. My wife and I are childless with a Chihuahua so we bought a small garden home.

We paid $144K for it and with a 3.625% 30 year fixed rate USDA Rural Development Loan, PITI is $804/month. Because we are over 80% LTV, this includes a small amount of Mortgage Insurance (or MI). It will reduce by $2/year until we reach 80% through appreciation or paying it down.

The rates are right around the same amount we paid, and she and I are both on the mortgage, the note, the title, etc.

You are a little different because your girlfriend isn't going to be on the note, the mortgage, title, etc. So your income will be smaller, but you are closer to my home's purchase price.

So keep my numbers in mind as you'll be somewhere in that neighborhood from a monthly note standpoint.

Best of luck.

quote:

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$51,000 before the year is over

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This is about what I made when I purchased my first home 2 years ago for $185,000. I put down 5% on a conventional loan at 3.75% interest. My monthly payments (mortgage, interest, taxes, PMI) are right at $1100/month.

Of course, this board will probably tell you that I spent too much for what I make and that I should have waited until I had 20% to put down. But I didn't want to live in a total dump, and I didn't want to wait until I was in my 30s to buy a house (Seriously, that 20% down rule of thumb is ridiculous). So I did what I did.

I make more now than I did a couple years ago, but even at a $51k salary, paying my note was not a problem. It just takes a little budgeting and self discipline. However, I had no other debt to worry about either. Also, I spent a lot of money furnishing the place. And I made sure I had the money to do that before I bought the house.

General rule is that the total price of the home Should not exceed households three years gross pay. I preferably attempt to keep all of my expenses limited to two weeks take home pay.

No need to be in a hurry to buy.

Renting is not that bad and it gives you flexibility to move if a better professional opportunity arises.

Realtors and mortgage originators will tell you to buy what they can approve. I would buy a house that meets your needs.