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If there was a house listed for $230,000 and I had a $50,000 down payment, would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?
What is the most that somebody with a salary of $45k could COMFORTABLY AFFORD? (assuming they have no kids and live a modest lifestyle by most ppl's definition)
And assuming that annual property taxes were $6,000.
With interest rates as low as they are, I think you should be able to afford the $180,000 mortgage. But those taxes! Your mortgage lender will tell you how much your monthly mortage will be and hopefully the taxes will be included in that payment; otherwise you have to set that money aside yourself each month.
If there was a house listed for $230,000 and I had a $50,000 down payment, would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?
What is the most that somebody with a salary of $45k could COMFORTABLY AFFORD? (assuming they have no kids and live a modest lifestyle by most ppl's definition)
And assuming that annual property taxes were $6,000.
It'll cost you $600/month for taxes and insurance alone; add principal and interest (depends partly on how high your credit score is) and you're at $1400-$1500. You still haven't added the cost of utilities (oil is higher than gas on Long Island at the moment), possible car payments, car insurance (maintenance?) and gasoline. Chances are, you want to eat, and oh yeah, you will have to pay some income taxes as well... And then there's the occasional maintenance and some repairs...
Can it be done? Probably, but I wouldn't say "comfortably"; you'd have to watch your "pennies". That's provided you can get a mortgage with your income. If you want to talk to someone without obligation, send me a DM and I'll give you a name and number of someone who'll tell you.
What is the most that somebody with (an income) of $45k could COMFORTABLY AFFORD?
Beyond the loan... including Taxes, insurance, and ALL utility bills... no one should commit
themselves to more than 1/3 of their NET income for those housing costs. That's comfortable.
Even with ZERO income tax or FICA deductions and even getting food stamps...
your maximum housing allowance would be $15,000 per year. For EVERYthing.
A far more realistic figure is $1100 ... maybe stretched to $1200. For EVERYthing.
If $500 of that is going to taxes, maybe $100 for insurance and probably $250 for the utilities...
that leaves a MAXIMUM of $350 per month for Principle and Interest. That's not a lot of house.
. . . would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?
. . .
And assuming that annual property taxes were $6,000.
Start with $45,000.
Subtract taxes.
Subtract $6000.
What's left? What are your other expenses?
When I bought my first house I borrowed $140,000 at about 6.5. I think property taxes were about half of yours, but I also had $200 HOA dues. My salary was about $42,000. Also single with no kids. I did fine.
But I had no car payment, low utilities, no cable, no cellphone, and didn't go out much.
Most on this forum will probably tell you to spent like 1.5x to 2x your annual salary on a house when in reality you SHOULD be ok at 3x-3.5x (depending on expenses). You are at 4x so it would be somewhat tight but doable if you can keep your other finances under check and you have a steady job.
Most on this forum will probably tell you to spent like 1.5x to 2x your annual salary on a house when in reality you SHOULD be ok at 3x-3.5x (depending on expenses). You are at 4x so it would be somewhat tight but doable if you can keep your other finances under check and you have a steady job.
In Phoenix, taxes on a $230k home would be under $2k.
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and oh yeah, you will have to pay some income taxes as well... And then there's the occasional maintenance and some repairs... 
