Your opinion for $500k House with $150k Income (loan, buyer)

[Hacker1234]

Im pretty sure the 2950 a month is Tax Insurance everything. And that does sound about right. Not too far off from my mortgage payment.

[Lowexpectations]

Originally Posted by Hacker1234

Im pretty sure the 2950 a month is Tax Insurance everything. And that does sound about right. Not too far off from my mortgage payment.

Could be I used 2.5% effective property/school/mud tax rate when my actual rate is just over 2% so that other 0.5% could cover the insurance 2500 a year or 500k

[Hacker1234]

Yeah thats not bad. I remember when I was in my 20s, I was pulling down like 60k a year. I think it came out to about 4400 a month, and then I had a 1200 month house payment. So left me around 3200 a month for whatever.

So 150k a year after taxes is like what 10k or so a month. Minus 3k mortgage, they still have twice as much money as I did.

[eastontracks]

Wow half a million on a 150k? My household is about 30 less and I feel so so about my mortgage 5 times less than that amount. Maybe I just eat too much whataburger or something.

Houston likes shiny new big and expensive things so this doesn't surprise me.

[Hacker1234]

Go to the West Coast, where 500k gets you an entry level fixer upper and people are buying them earning much less then 150k a year.

[DanielWayne]

When we went house searching, we agreed upon a max such that if one of us lost their job, the other could still pay for everything (and continue saving) without any financial stretching. Guess what. We had to exercise that clause. And we were still able to continue paying over 30% extra to our monthly principal because we were careful not to over extend. Bad things can happen. There are some bad things you can prepare for if you are careful.

[DSL_PWR]

Originally Posted by Hacker1234

Go to the West Coast, where 500k gets you an entry level fixer upper and people are buying them earning much less then 150k a year.

don't they do jumbo and extended loans out there? totally different.

It's like interest only for XX years and then principle, etc.

[PDXNative2Houston]

Originally Posted by DSL_PWR

don't they do jumbo and extended loans out there? totally different.

It's like interest only for XX years and then principle, etc.

Overall it sucks "out there" from a housing perspective. Growing up, it was just the norm that people were very mortgage poor, counting every penny. They traded better cost of living to salary ratios for better free outdoor activities and scenic beauty.

[Hacker1234]

On the West Coast for a 500k house all you need is an FHA loan. They go up to 625k.

And you can stretch the frontend ratio all the way up to 50 percent with only 3.5 percent down.

On a Jumbo you would need 20 percent down, interest rate would be higher and they are much tighter controls on the income ratios.

Thats how people earning less then 150k a year get a 500k mortgage in Cali.

[Hangster]