U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-14-2011, 09:20 AM
 
Location: Randolph, NJ
4,073 posts, read 7,083,151 times
Reputation: 3231

Advertisements

Quote:
Originally Posted by manderly6 View Post
What a recipe for disaster. You need to sit down and put together a very detailed budget of all your income and expenses. And you need a plan for savings/retirement/college fund. You may want to seriously consider talking to some kind of financial planner.
Exactly. And you may have noticed that many people have lost jobs and having trouble finding new jobs. Stretching for more house and living paycheck to paycheck is not the way to go, now more than ever.
Reply With Quote Quick reply to this message

 
Old 11-14-2011, 09:24 AM
 
1,041 posts, read 2,453,583 times
Reputation: 764
Quote:
Originally Posted by Mightyqueen801 View Post
With such a specific number, I'm guessing the OP has a specific house already in mind.
I'm thinking 4/5 Bed 3 bath 3k+ sq ft new construction McMansion in mind

Reply With Quote Quick reply to this message
 
Old 11-14-2011, 10:48 AM
 
2,508 posts, read 5,290,162 times
Reputation: 1550
I'm pissed that people even have to ask this question! We need more regulation and laws governing this. People are stupid and banks are businesses set up to make money, put that together and you have a recipe for disaster...a la 2008 financial meltdown.

The fallout from the ignorance of the consumer and bravado of the banks effects everyone. There needs to be a simple set of rules, and it needs to be conservative! They lost their right to play things loose when the system almost failed and they almost crashed the global economy. This is going to be a hard pill for both the consumer and the banks to swallow but its a dose of medicine that needs to be administered ASAP

PS I really like that house in the pic
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 11:08 AM
 
17,472 posts, read 14,960,366 times
Reputation: 33217
Quote:
Originally Posted by NJmom29 View Post
Thnx for the responses.
We r planning to put 20% down and after 3% closing costs we will mostly be paycheck to paycheck kind of(not much be left in the savings).

My only criteria is good school dist though my daughter is still an infant we r planning to stay in the property for at least next 15-20 yrs.

In next couple of months I am planning to go back to work.So may be once I get a job is it a good idea to start searching?

For 580k-600k homes with taxes 12k-13k how much should be the house hold income?

Thanks
If you are going to be living paycheck to paycheck with no real savings, what happens if your husband loses his job, or one of you gets sick, or the house needs some major repair?

You still have several years at least before you have to start thinking of school districts for your daughter, and even then there are very good school districts in towns with $400,000 homes, you don't have to be in the richest neighborhood to send her to a good school, and if you can't really afford it, you're going to be living a lie and I'm not sure teaching her the lessons you want to. Rent for a few years and get the house you want with enough down to make a manageable mortgage payment that won't send you to the poorhouse if one of you loses a job, AND with an emergency cushion... or downsize to a more manageable house right now, so you can put 20% down and still have emergency savings.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 11:24 AM
Status: "Even better than okay" (set 25 days ago)
 
Location: Coastal New Jersey
51,568 posts, read 50,842,495 times
Reputation: 60606
Quote:
Originally Posted by tdstyles View Post
I'm pissed that people even have to ask this question! We need more regulation and laws governing this. People are stupid and banks are businesses set up to make money, put that together and you have a recipe for disaster...a la 2008 financial meltdown.

The fallout from the ignorance of the consumer and bravado of the banks effects everyone. There needs to be a simple set of rules, and it needs to be conservative! They lost their right to play things loose when the system almost failed and they almost crashed the global economy. This is going to be a hard pill for both the consumer and the banks to swallow but its a dose of medicine that needs to be administered ASAP

PS I really like that house in the pic
I believe that often the emotions and other non-logical thoughts take over people's judgment when it comes to owning a house. Our society puts so much of our value on what we own and how much we own, and we allow ourselves to be sucked right into the game. Have to be in THIS town and on THIS side of the town, have to have THIS much square footage, have to have THESE expensive countertops, etc., or we're just not worth all that much as people. Believe me, being a (horrors!) divorced working mother who rented in a town full of SAHMS living in big houses, I felt like a failure for many years. Finally, I made a conscious effort to dump that baggage. None of it really matters.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 11:33 AM
 
Location: New Jersey
2,060 posts, read 4,040,693 times
Reputation: 1506
Quote:
Originally Posted by Mightyqueen801 View Post
I believe that often the emotions and other non-logical thoughts take over people's judgment when it comes to owning a house. Our society puts so much of our value on what we own and how much we own, and we allow ourselves to be sucked right into the game. Have to be in THIS town and on THIS side of the town, have to have THIS much square footage, have to have THESE expensive countertops, etc., or we're just not worth all that much as people. Believe me, being a (horrors!) divorced working mother who rented in a town full of SAHMS living in big houses, I felt like a failure for many years. Finally, I made a conscious effort to dump that baggage. None of it really matters.
its a marketing gimmic that's ingrained in the culture. Americans have been told for decades to own bigger and they did end up owning bigger than they could afford. i doubt there are too may countries that own as much square footage as Americans do as their primary residence. compare with developed nations in Asia or Europe. they live in much smaller houses inspite the affluence. bigger houses DOES NOT mean better life. but bigger savings DO mean better life.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 12:05 PM
 
Location: NJ
12,284 posts, read 31,024,091 times
Reputation: 5195
Quote:
Originally Posted by manderly6 View Post
What a recipe for disaster. You need to sit down and put together a very detailed budget of all your income and expenses. And you need a plan for savings/retirement/college fund. You may want to seriously consider talking to some kind of financial planner.
this.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 02:52 PM
 
Location: West Orange, NJ
12,542 posts, read 17,797,250 times
Reputation: 3681
Quote:
Originally Posted by NJmom29 View Post
Hi

We r looking to buy a single family home for $580k with $11600 taxes.
we have a house hold income of 140k with no debts.so my question is how much can we pay the mortgage(with taxes),utility bills etc and how much percentage of the income should go into savings.We have a 10month old infant.Can any one suggest any thing?
you're putting 20% down? if so, that leaves a $464,000 mortgage, and close to $1,000/month in taxes. you're looking at a P&I + Taxes and Insurance of about $3,300-$3,600 depending on rate. I must say, my payment is lower than that, and household income is higher, and i wouldn't have gone that far. though, you have no debt, and we have about $400/month going to student loan payments, and 1 car payment.

we save 10-15% pretax to 401k
about 10% to money market/rainy day fund

our gas and electric bill varies from $90 some months, and close to $500 in winter months. water is about $35/month for us with 1 infant.

i think it would be a stretch to afford that payment with a growing family, but your finances could be different than mine.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 03:53 PM
 
Location: West Orange, NJ
12,542 posts, read 17,797,250 times
Reputation: 3681
Quote:
Originally Posted by TonyStarksNJ View Post
Assume Purchase price of $600k
20% down (120K)
Loan Amount of 480k
Assume Rate of 4.25%
Mortage Payment of $2361.31
Assume 13k in Taxes monthly tax is $1083

Total Payment (Principal Interest and Tax) = $3444.64

You actually need more than the 120k down, closing costs probably push that up to about 144k down. Firgure 4% closing costs (24k).

In my opinion, you need to CLEAR $11,500 (AFTER TAXES) a month to afford the 600k house. Thats what I would be comfortable doing. I am more conservative than others. You have many folks that spend 50% of their GROSS income on housing, which is crazy
i think your post is close to accurate, though as you pointed out, slightly more on the conservative side. i'm around 35% with my thought process, on net income that should go to mortgage, insurance, and taxes. but, i'm also about being responsible with other debt, using cashback credit cards to your advantage, never carrying a balance, etc., etc.

To the OP, if $140k is one income, and you can reasonably expect to add another $60-$80k when you're back to work...but i wouldn't advise buying a house on what you could potentially afford.

also, plans for any more kids, or just one? that impacts the financial budgeting as well.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 03:56 PM
 
Location: West Orange, NJ
12,542 posts, read 17,797,250 times
Reputation: 3681
Quote:
Originally Posted by TonyStarksNJ View Post
I'm thinking 4/5 Bed 3 bath 3k+ sq ft new construction McMansion in mind
that house wouldn't be anywhere near $580k in my area. that's $800k+range...
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top