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Hi. I make $64k (including bonus and OT), about $5k in debt and a $429 car payment. I now pay $800 for a one bedroom apt., and commute to the city (cost just over $250 a month just for that, plus double tax). Could I afford a condo and if so what price range should I be looking at?
Hi. I make $64k (including bonus and OT), about $5k in debt and a $429 car payment. I now pay $800 for a one bedroom apt., and commute to the city (cost just over $250 a month just for that, plus double tax). Could I afford a condo and if so what price range should I be looking at?
I would contact a mortgage broker to find out what i can get
preapproved for (if you want some names let me know and i will send you some we recommend)
They will be able to give you different views
Say you qualify for 300m and say you find something you like at 290m
they will be able to tell you what the payments will be including taxes and insurance (and maintenance if it is for condo)for that area .
i'm terribly conservative. we purchased our first home for $140K, making about what you make, but had no debt and car payments, plus had a 10% downpayment. i thought we were overstretched (plus our taxes were "only" about $3600/yr). i could not imagine affording anything over $150K on that salary. i'd go gray and have many a sleepless night.
i'd focus on getting rid of your debt and building a downpayment first. good luck.
You're typically going to qualify for a mortgage amount that's +/- 3x your annual salary, so you're looking at around a $195,000 mortgage. Unless you've got around $50k to put down, I'd say you're going to have a hard time finding a condo in a safe place that's a reasonable commute to NYC.
Take your net income monthly-$5333 and divide by 36- that's the ratio lenders will allow for housing costs, debt. Mortgage you would qualify for is about $190K. Definitely speak to your bank or a mortgage broker and get an idea what you're qualified for.
That's not true about qualifying. When my husband and I first went to buy a home we were making about 50K between the both of us, I worked part time and he was just starting out as a police officer. We had nothing to put down on a home and we qualified for 260K mortgage. I think your best bet is to look in the areas such as Jackson, Howell, Toms River, Brick, Freehold. Go to realtor.com and check the areas out and see if anything you like falls into your price range. The one thing you need to think about though is those outrageous taxes in NJ. We purchased our home in MD 4 years ago for 170K, our taxes were only 1500 a yr, our payment was 1210 a month, that is for a 30yr fixed. Make sure you keep the high tax rates in NJ into consideration that can add a good 300+ onto your payment a month! I know so many people that are fleeing that state because of taxes.
That's not true about qualifying. .... We had nothing to put down on a home and we qualified for 260K mortgage.
Qualifying and affording are two different things. Up until recently, you could qualify for literally anything. I was qualified last year for 7 times my annual salary. I couldn't possibly have afforded the payments on that. Obviously, I didn't buy a home for that amount.
After being a mortgage rep for many years for a very large bank-the rule of thumb ratio-wise was 28/36. In the last few years those standards were loosened, now we see a multitude of foreclosures, homeowner's struggling to make payments and a stagnant market. Rule of thumb-own your home, don't let it own you.
Yes that big beautiful Mc-mansion may look tempting, but don't do it! Most nice houses in Central NJ and I'm talking from Hightstown down the Rt.130 corridor to Bordentown are still going for 299k. For people just starting off that's a huge mortgage payment epescially if you don't have 20 percent to put down. Hightstown VS. Bordentown tax-wise? In Bordentown you'll pay about 2 grand less a year in taxes. Let's say 4k instead of 6k in Hightstown. But there are tradeoffs. Bordentown doesn't have the appeal and central location advantage, Hightstown has. In Bordentown there are fewer businesses and stores. Usually have to venture into Hamilton or further south to hit a Target or a pharmacy. Hightstown in central to just about everything:
1.) rt. 539 for the shore or AC
2.) rt. 33 for freehold mall
3.) princeton junction train station right up 571
4.) ny via the train
5.) rt. 1 straight up 130 if u prefer
6.) 130 to 295 for philly
7.) nassau st just around the corner
A more favorable area based on the convenience and you pretty much pay for it in the way of taxes. The school districts are about the same, houses are priced in the same range, except on the other side in e. windsor, the taxes are alot higher over there, but there is more space between homes and the houses are nicer.
Hi. I make $64k (including bonus and OT), about $5k in debt and a $429 car payment. I now pay $800 for a one bedroom apt., and commute to the city (cost just over $250 a month just for that, plus double tax). Could I afford a condo and if so what price range should I be looking at?
For 3 times your income, you should be able to get close to $200,000 mortgage. You should be able to afford a nice condo at, say, Edison Hollow South with 5 minute walk to Edison Train Station.
I know a neighbor bought a bigger house and his 1707 Raspberry Ct Edison NJ 08817 1br 1ba 2fl condo just sold and closed (listing $197,000 and closed at $190,000) recently.
Several good things for you is that the condo in the area renting $1,300 to $1,400, and after tax deduction, your monthly mortgage interest and property tax can bring down your cost to about $800 a month. (rent can not deduct from your income).
Also, if you already have the car for a few years (how many), soon your car loan is going to paid off, so you will have $429 more a month to spend. (Don't buy another new car right away since these days, cars can last for much longer than before. e.g. 4 years average in 70's then 5 years in 80's, then 7 years in 90's. For 2000's many people drive a car for 10 years, still very good and reliable, I guess that's why Kia and many more follows to offer 10 year warranty for the cars).
Also, when you buy such a nice condo, you are moving up since 1 bedroom apartment is normally about 600 sq ft (some even 400 sq ft), and the 1br condo at Edison Hollow South is around 960 sq ft.
Some owners make it a 2br 1ba condo by spend a thousand or two to put a dry wall and door easily due to the layout. Some even just went to Welcome to IKEA.com to get a predesigned wall furniture to easily turn it into a 2br with one side all bedroom furniture like closet, bookshelves (all the way to ceiling) and another side entertainment center for TV, DVD, stereo ...etc.
This extra posibility would help you for some extra income, say, during the bad months, or give your visitors a guess room, or yourself a home office ...etc.
As to downpayment, I know some neighbors working at Wall St with good credit paid down little, like one at Bldg 14 bought this $250,000 1br with bsmt condo only paid down 3%. But, in general, you want to pay higher down payment, but people also use something like 5-15-80 meaning 80% mortgage from a bank with best rate, then 15% from 2nd one may be higher but since to amount is much smaller, so payment is lower, and with that 5% down. Also, check out your bank or Bank of America which I saw news recently that they would pay all the closing fees and points, and application fee ...etc. that could be around $10,000 difference.
If you like college environment such as Middlesex County College, Mill Pointe 2br 1ba condo is only around $180,000 you can get a 2br 1ba condo there, size and price wise 2br there is about 1br at EHS since it is not able to walk to train, but there is shuttle from the community to Metuchen Train Station.
Like 40 College Dr, Edison NJ 08837 is to be sold and closed around $180,000 soon and there are some other choices in the community as you may call your realtor to take a look at ...
Last edited by ehs; 06-21-2007 at 12:56 PM..
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Biting Off More Than You Can Chew!!
