- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: How much house can 140K/year salary buy with 4% 30yr?
Posted on 6/17/14 at 3:17 pm to ItNeverRains
Posted on 6/17/14 at 3:17 pm to ItNeverRains
quote:
Depending on credit/debt you'll qualify for as much as 560k.
When I bought my house two years ago they told me that I could borrow up to 860k. At the time we had no debt outside of my wife's student loans and both of our credit scores were above 800. I was floored when they told me how much we could borrow.
I was very tempted to borrow some money and throw it in the market and try to make some money off of the bank. I got scared and talked myself out of doing it.
This post was edited on 6/17/14 at 3:50 pm
0
Posted on 6/17/14 at 3:29 pm to JayDeerTay84
quote:
My house is 2.25 X my yearly salary. Feels comfortable.
Mine is .8 X my annual salary. I live a full life OUTSIDE of my house. I do not want to be stuck inside of it never being able to do the things I love. I have a feeling my wife has a different long term plan.
Posted on 6/17/14 at 3:32 pm to LSUFanHouston
quote:
If the OP wants to buy a house, by all means... buy a house. But personal residences are no longer the slam dunk financial decision they once were.
LINK
Not sure it was ever a slam dunk, this link offers a lot of good reasons not to buy today.
Posted on 6/17/14 at 4:19 pm to mglsu21
quote:
when I can go from a 1BR/1BA apt to a 3BR/2BA house while increasing my payment only $8/month (including escrow)
Then you are either (1) comically overpaying for rent or (2) moving from a high-demand neighborhood to an extremely low-demand one. Buying becomes cheaper in the long run but not right away.
Lots of people say that buying isn't more expensive than renting, but don't compare apples to apples.
Posted on 6/17/14 at 4:26 pm to Motorboat
quote:
Mine is .8 X my annual salary. I live a full life OUTSIDE of my house. I do not want to be stuck inside of it never being able to do the things I love. I have a feeling my wife has a different long term plan.
Of course this depends on income somewhat, but I've always felt under 1.5x is the place to be. I know too many people that can't afford to leave their half-furnished house.
My wife likes going on trips and buying crap for the kids. I am sure she would like a nicer/bigger house, but she doesn't want to cut back on trips and shopping. She also doesn't want to cut back on the savings (which I am thankful for). So, a cheaper house we go.
Posted on 6/17/14 at 4:39 pm to LSUFanHouston
quote:
I know too many people that can't afford to leave their half-furnished house.
Exactly my point.
Posted on 6/17/14 at 5:03 pm to Motorboat
quote:
Mine is .8 X my annual salary. I live a full life OUTSIDE of my house. I do not want to be stuck inside of it never being able to do the things I love. I have a feeling my wife has a different long term plan.
Same. My house cost me .7 of my yearly salary.
I love having disposable income and money to invest. There isn't a worse feeling than wondering where your next meal will come from or how you are going to pay your bills next month.
My family is pretty well off but I got cut off 100% after a big family fight when I was in college. Although I hated them at the time for doing it, I can't think of a greater blessing looking back.
ETA: Point of the story is I like to plan for the worst and hope for the best. I don't have a 2nd income if I lose my job.
This post was edited on 6/17/14 at 5:39 pm
Posted on 6/17/14 at 5:29 pm to Motorboat
quote:
Mine is .8 X my annual salary.
Wow.
Are you talking about the purchase price or your original mortgage/loan amount? Either way, that is crazy affordable housing for you.
If I tried that in my area, I couldn't even get a halfway decent empty lot, much less one with a decent house on it.
My purchase price was 3.15 times my salary and my original mortgage was 2.8 times my salary at the time. I feel like I'm living extravagant as hell (house-wise) compared to most of you guys.
Posted on 6/17/14 at 6:56 pm to CrackingCodes
I may be more conservative than most but in your situation I'd only use your income to figure what I could afford....unless you don't plan to have kids
Posted on 6/17/14 at 7:59 pm to yellowfin
OP what kind of downpayment are you thinking of doing. Your situation sounds almost identical to mine. 140-150k household about 40k student loan debt and one child on the way. Will knock household down about 10-20k once baby comes but will be fairly steady. Have almost enough savings to write a check and erase the loan debt but want to get into a house soon once my child is born.
Posted on 6/17/14 at 8:19 pm to Saint5446
If 2.5 is the rule of thumb then we are doing well then. Our mortgage is about 1.8x our household income.
Posted on 6/17/14 at 9:08 pm to CrackingCodes
Buy my house by old Mandeville. I was exactly like you 10 years ago. Once you have kids your taste and needs will change.
Posted on 6/17/14 at 9:38 pm to cwill
quote:
You shouldn't buy a house until you have kids. Rent. It makes more financial sense and you have no responsibility, no costs for a new toilet, damage repair, roofing, new AC or all the other bullshite that comes up.
quote:A 1000sq ft apartment in mandeville goes for the same rent at a brand new 3000sq ft house monthly mortgage
The one caveat is that maybe in the area he's buying renting isn't cheaper.
This post was edited on 6/17/14 at 9:45 pm
Posted on 6/17/14 at 9:42 pm to CrackingCodes
You can get a mortgage for more than you should.
Posted on 6/17/14 at 9:47 pm to I B Freeman
My homes mortgage balance is 58% of my gross. I have real estate investments, but you would have a tough time convincing me that a primary residence is an investment. I'm not married, that makes a difference. I also have residences in Florida and Wisconsin. They are rented, but both could and might make great vacation or retirement places.
It's all about priorities. But if you're asking a financial question, the answer is the least expensive option available.
It's all about priorities. But if you're asking a financial question, the answer is the least expensive option available.
This post was edited on 6/17/14 at 9:48 pm
Posted on 6/18/14 at 6:45 am to I B Freeman
quote:
You can get a mortgage for more than you should.
It really is criminal how much house the bank says you can "afford".
Our mortgage is 1.8x annual salary and note is 20% of take home after 401k contributions. I can't imagine putting more money than that into a house.
Late 20s with no debt, 2 MBAs paid for, and 1 kid on the way.
Don't overstretch yourself on the first house.
Posted on 6/18/14 at 2:21 pm to Cold Cous Cous
quote:
Then you are either (1) comically overpaying for rent or (2) moving from a high-demand neighborhood to an extremely low-demand one. Buying becomes cheaper in the long run but not right away.
Yes, I was definitely overpaying in rent. But that is Baton Rouge for you. I bought a house in Prairieville.
And it is definitely not cheaper right now, despite the almost similar monthly payment. Between adding an electric arm to my gate, painting, storage building, lawn equipment, etc, I have definitely spent more money buying than renting. Hopefully in the long run I will see it as a good financial investment, however right now it is more of a happiness/life investment with more space, a dog, and a back yard. Obviously things change, but I plan on staying there quite a while...not viewing it as a starter house.
FWIW I put off buying a house for 3 years after I started contemplating it because I felt the time was not right. I was very fortunate that my purchase time was at the very bottom of the interest rate fall, and I found a house that I love.
Posted on 6/18/14 at 3:25 pm to LNCHBOX
quote:
Great idea. Pay someone else's mortgage and get zero return on your monthly rent payment on the possibility that stuff might break in the few years before you have kids.
Don't you understand that you are renting the money? Granted, you get a tax deduction, but a house is taxed, insured and must be kept.
A young couple should be having fun on the weekend, not doing yardwork, fixing the toilet or painting the trim. Once you have kids, life as you know it is OVER.
Posted on 6/18/14 at 3:37 pm to CrackingCodes
Simple and very conservative rule of thumb: your take home pay per week should equal the monthly mortgage payments. That includes P&I, escrow and any mortgage insurance. Escrow will cover your property taxes and homeowners insurance. Private mortgage insurance is typically required when down payments are below 20%.
Take home pay should be AFTER you contribute the maximum into your 401K or other retirement plans for both you and your wife. DONT SKIP THIS - it is way more important than any bells and whistles on your house right now if you are in your 20s .
Making some assumptions, it looks like you can afford up to $300K MAX if you put some money down, but do the calculations yourself.
Also buy and both you and your wife read The Automatic Millionaire if you haven't already.
Take home pay should be AFTER you contribute the maximum into your 401K or other retirement plans for both you and your wife. DONT SKIP THIS - it is way more important than any bells and whistles on your house right now if you are in your 20s .
Making some assumptions, it looks like you can afford up to $300K MAX if you put some money down, but do the calculations yourself.
Also buy and both you and your wife read The Automatic Millionaire if you haven't already.
Posted on 6/18/14 at 8:09 pm to CrackingCodes
My house is roughly 1.95x our current salary. We live very comfortably and take getaways when we can.
With rates at historic lows, home prices (around here) lower than they've been in 10 years, and rent going up......it just didn't make sense to continue renting.
Since we've bought, the market has rebounded a bit, but rental prices have gone up significantly. A decent 2 bedroom rental in this school district costs more than my total monthly note on a 2800 square foot house (including insurance, taxes, etc....3.5%, 30 year fixed).
If you are planning on staying there for 5+ years, then buy. I'd shop in the low end of your price range and expect to upgrade later as your family grows.....unless you find a great deal on a larger home like I did.
With rates at historic lows, home prices (around here) lower than they've been in 10 years, and rent going up......it just didn't make sense to continue renting.
Since we've bought, the market has rebounded a bit, but rental prices have gone up significantly. A decent 2 bedroom rental in this school district costs more than my total monthly note on a 2800 square foot house (including insurance, taxes, etc....3.5%, 30 year fixed).
If you are planning on staying there for 5+ years, then buy. I'd shop in the low end of your price range and expect to upgrade later as your family grows.....unless you find a great deal on a larger home like I did.
This post was edited on 6/18/14 at 8:14 pm
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News