Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
urbywan, you're assuming in your tax calculations though that the property is assessed at the sale price. Most often this is not the case and the property assessment value for a 350K house is closer to 225-250K. Just something to think about when calculating property taxes. Of course, properties can be reassessed at a higher value and that could be a real sticking point in the long run.
I just tried the bankrate.com mortgage calculator..it give the same affordable mortgage payment, independent of the expenses entered....Nice!....
The more I look at the numbers the more I'm heading for a lower cost home. I can afford a large down payment, but I think that money will produce better in the market in the near future...
You need to list your expenses and add in the payment you'd get.
If this straps you leaving no money for contingencies like home/car repairs, medical bills, etc, either the home is too expensive or you need to cut other expenses.
Don't put yourself in a bind counting on pay increases that may not come.
Live beneath your means and sleep better.
Just a 62 year old Bubba's musings from experience.
Really, why is it that people are pushing beyond what they can truly afford to get the most expensive house and then complain later about money? Another answer to the original question is:
Some people take on a huge amount of debt, much more than they can ever truly ever afford.
urbywan, you're assuming in your tax calculations though that the property is assessed at the sale price. Most often this is not the case and the property assessment value for a 350K house is closer to 225-250K. Just something to think about when calculating property taxes. Of course, properties can be reassessed at a higher value and that could be a real sticking point in the long run.
Bottom line I have lived in a house with a 230K mortgage and 8K in real estate taxes and a house with a 40K mortgage and 3K real estate tax. The 40K makes it SOOO much easier to sleep at night!
A tax rate down here of 1.20 is average now in towns like cary, Raleigh , Apex Fuquay etc. That means you are closer to 4K in taxes on a 350K home down here. Interest rates are now up near 6.6% 30 year fixed, then there is the electric bill two zone ac gas bills for heat water sewer trash Cable TV DSL Phones GASOLINE car insurance homeowners insurance Life insurance. IF your cars are paid for that will help, however many have leases and loans. These are all fixed costs. Then there is medical insurance, copays and stuff. All before Food, vacations, haircuts, nail salons, clothes, lawn care GOT KIDS? Boy ya need a bunch of money to live.
Lets look at the numbers... 270 mortgage at 6.5% is 1600 P&I
Tax Real estate 1.20 per 100 value 370
Utilities Electric/ Nat Gas say august 250
Water sewer trash 100
DSL/ TWCable/ Wireless phones/landline 225
Gasoline 2 cars two jobs 200
Insurance homeowners and autos 200
Well we are close to 3000 per month already crazy huh when you look at the numbers. Then say add in car payments of say 400 a month food 700 a month entertainment savings yes you need to make some dollars.
Agreed. Those seem to be the typical bills that folks have. The food bill is just right if it's more than one person. If you figure in a big vacation and 3 smaller trips throughout the year you're looking at more money. Factor in eating out at a decent restaurant at least one weekend every two or three weeks and going to lunch with a co-worker once every three weeks and the numbers go higher. To me, all of those things are things that most people would want to continue to be able to do while owning a home.
I just saw urbywan's post, pretty close to the numbers I was calculating for expenses outside of housing related:
$/month
Food $ 600.00
Gasoline $ 200.00
Auto payment $ 550.00
Auto Insurance $ 75.00
Auto Repair $ 80.00
Home Insurance $ 40.00
Entertainment $ 200.00
Education $ 115.38
Min Savings $ 1,000.00
Marias Mom $ 300.00
Phone (multi service) $ 125.00
Cable $ -
Internet $ -
Water/sewer $ 50.00
Electric $ 140.00
Clothing $ 50.00
Sports $ 100.00
Misc $ 100.00
Travel $ 269.23
Total $ 3,994.62
At 140k and a maxed out 401k that leaves you $1597/month for mortgage, taxes, and maintenance....
So you're not planning to fly when you take a vacation? If you're going to fly (avg 350 per person per ticket) and stay in a hotel for about 5 days (130 per day for 5 days) and do other things on the vacation (600 misc.) you can tack on another 1,800 for two for the vacation. Add in another 2 or 3 smaller weekend type trips and you're looking at adding another 500 dollars, give or take. Add another 150 for cable/internet.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
that or
