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Old 11-13-2011, 02:49 PM
 
2 posts, read 3,182 times
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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?
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Old 11-13-2011, 03:16 PM
 
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what savings? $4k out of your $7K (assume $140K is before taxes) per month check will go to housing (2k mortg+1k taxes+1k util-maint-ins). You need savings for retirement/school/benefits as you cannot rely on soc sec. Either buy something cheaper ($450K and less taxes) or wait as prices will be going down for the next 10-20 years. Contrary to what people believe housing in the ny area is still in a bubble and unaffordable.
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Old 11-13-2011, 03:39 PM
 
17,205 posts, read 14,812,677 times
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That seems like an expensive house for that income level - I hope you're planning to put at least 20% down? Make sure you have 8 months worth of savings/emergency fund before buying a house - especially with a baby, that's more important that home ownership.

Here are some links. Dave Ramsey says house payment should be no more than 25 of your take-home:
http://www.mdmproofing.com/iym/articles/2002-08-30.html

Last edited by ocnjgirl; 11-13-2011 at 03:49 PM..
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Old 11-13-2011, 03:58 PM
 
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wayyy to much house for that income level. I dont know how much you are putting down.

Its my opinion, you need to be under $400k. Personally speaking, your principal + interest + mortgage insurance (if any) + property taxes should be less than 30% of your NET monthly income. Me and my wife are at that level right now, and let me tell you, it makes sleeping a lot easier.
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Old 11-13-2011, 04:49 PM
 
2 posts, read 3,182 times
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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
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Old 11-13-2011, 05:50 PM
 
1,041 posts, read 2,441,074 times
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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
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
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Old 11-13-2011, 06:27 PM
 
Location: NJ
1,495 posts, read 4,437,462 times
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THere are so many great houses I've seen for under 300k in very desirable neighborhoods like East Brunswick and Bridgewater, etc. and they have so much plus big yards. WHy does it need to be 580k? I would get the smallest house to live comfortably and use the rest to save for retirement and savings. You'll have so much more emergency money on hand if somebody gets laid off.
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Old 11-13-2011, 08:40 PM
 
Location: New Jersey
2,060 posts, read 4,020,039 times
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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
At least 180k to consider buying a house worth 580k. That assuming I have enough cash to cover 20% down payment + closing + initial set up cost (furniture, appliances, paint, etc) + savings to last at least 6-8 months.
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Old 11-14-2011, 07:03 AM
Status: "Even better than okay" (set 8 days ago)
 
Location: Coastal New Jersey
51,202 posts, read 50,499,962 times
Reputation: 60095
Quote:
Originally Posted by Raven1976 View Post
THere are so many great houses I've seen for under 300k in very desirable neighborhoods like East Brunswick and Bridgewater, etc. and they have so much plus big yards. WHy does it need to be 580k? I would get the smallest house to live comfortably and use the rest to save for retirement and savings. You'll have so much more emergency money on hand if somebody gets laid off.
With such a specific number, I'm guessing the OP has a specific house already in mind.
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Old 11-14-2011, 07:47 AM
 
Location: NJ
17,579 posts, read 38,295,421 times
Reputation: 16098
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.
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