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I don't think ANYONE is suggesting 100k is a bad income by any means.
I think most people here are suggesting to not buy in over your head and to live within ones means.
And if someone making $80k bought a $375k house in NJ, they are house poor now matter how you spin it. They must save NOTHING and be amassing debt or borrowing money from an outside source cause that will not float a $375k mortgage and all that entails...
i am not sure i agree, depends on how you manage your spending on your needs and wants.... 375k mortgage is different from 375k house with 20% down though.
Last edited by joe moving; 02-18-2010 at 09:43 AM..
You can maybe get a 2 Bedroom, built around 1960. Be prepared for street parking. Basically you can not buy anything worthwhile. Get out while you can.
you will be fine with 350K - 400K, don't listen to all these others here. 100K is a good income. most people i know bought in the 325-375 range, and make 80 - 90k.
I make $100k, bought a $355k house 4 years ago. And it is tight. Painfully tight some months. No other debt but a car loan. If he goes to $400k, he'll probably be in trouble. Although we only put down 10% so we have PMI as well. If he puts 20% down he'll have more wiggle room. But i think $400k is too much.
I make $100k, bought a $355k house 4 years ago. And it is tight. Painfully tight some months. No other debt but a car loan. If he goes to $400k, he'll probably be in trouble. Although we only put down 10% so we have PMI as well. If he puts 20% down he'll have more wiggle room. But i think $400k is too much.
If he puts down 20%, he'll have about the same loan balance as you did when you bought (320 vs 315), though his property tax bill will be slightly higher all other things being equal -- so he'd come out paying about 100/month more (but that's not taking your PMI into account)
So on the balance of things, he's more or less in the same boat as you if he goes up to 400k (tight but not crushed)
As a senior loan officer, I can tell you lenders have become strict with Debt to Income ratios. Feel free to PM me and we can work backwards to a real world estimate of what payments they are willing to accept and then find a mortgage amount based upon that figure, regardless of conventional or FHA. I just don't want you putting the cart before the horse...
this whole thread is pointless without the OP telling us how much money he will have left after down payment.
For me, my mortgage payment is close to 60% of my actual income (after all taxes and 18% 401k deduction). I did this on purpose to lower the taxable income as much as possible, would gone 80% if i could but no bank will approve.
I am very comfortable with my debt because got a few years of mortgage/living expenses saved up and bought at a very good price. It just goes to show everyone's situation is different and without all the #s, it's not a fruitful discussion.
this whole thread is pointless without the OP telling us how much money he will have left after down payment.
For me, my mortgage payment is close to 60% of my actual income (after all taxes and 18% 401k deduction). I did this on purpose to lower the taxable income as much as possible, would gone 80% if i could but no bank will approve.
I am very comfortable with my debt because got a few years of mortgage/living expenses saved up and bought at a very good price. It just goes to show everyone's situation is different and without all the #s, it's not a fruitful discussion.
Really? You must be a real estate agent. Next, you'll be telling us they're not making anymore land. So by your own words then, we are living in a "deflationary" enviornment. Since housing keeps up with inflation and housing prices have declined across the board, what we have here is a deflationary enviornment. To the OP, your $100k in savings affords you the ability to shop selectively, if you don't like what you see, DON'T BUY IT!
Housing expense, is so much more than just the mortgage payment. One must also consider that each year your real estate taxes will increase by a minimum of 4%, your PSE&G bill will increase by at least 3%, if you have cable - expect a 5% increase, your heating bill will be at least $2,000, if you need to replace a roof - count on $4-5,000. When I bought my house, two weeks after moving in, my main sewer pipe broke and set me back $2K. Having a $140k sounds like a lot, and it is, but putting a $100K down will leave you with almost nothing after closing costs, painting, window treatments and any new plumbing fixtures (even Home Depot stuff is expensive). Save for a few more years - it will be worth it, housing prices are not going anywhere, at best they will stay flat.
No, I am not a Realtor. My point of view is from searching houses myself. My wife and I work in the NYC, so a short commute is preferable than a long commute. I have two children, 2 and 1, so good school is very important.
Needless to say, I have only look at towns that is close to NY, have a good school system and safe. Cranford, Westfield, Summit, Livingston are some of the towns I have look at and houses there are not cheap. If you only limit yourself to house under 400k. You will not find many. Many of these same houses have been on the market for months, and they still unsold for a reason.
If you don't care about school, don't care about commute, then there are plenty of choices for you.
No, I am not a Realtor. My point of view is from searching houses myself. My wife and I work in the NYC, so a short commute is preferable than a long commute. I have two children, 2 and 1, so good school is very important.
Needless to say, I have only look at towns that is close to NY, have a good school system and safe. Cranford, Westfield, Summit, Livingston are some of the towns I have look at and houses there are not cheap. If you only limit yourself to house under 400k. You will not find many. Many of these same houses have been on the market for months, and they still unsold for a reason.
If you don't care about school, don't care about commute, then there are plenty of choices for you.
I am familiar with both Cranford and Westfield since they were both on my shopping list - the OP could also look in New Providence/Berkeley Heights, both are within a stones throw of Summit, but you won't need to keep up with your rich neighbors in Westfield and Summit. You would be short-changing yourself to believe that only those towns you mention have a good school system and are safe, there are other towns, you might have to give something up though - perhaps it won't have a ritzy town center or a multi-year wait for a spot at the train station plus the inconvienance of not being able to park within 1.5 miles of the trains station due to zoning restriction (the prima donnas don't want anyone to park in front of their house) in Westfield, anything decent will sell for above 450k. Cranford is nice, just stay away from the flood zone area and Centennial Ave - has tons of Capes for sale. Livingston also is a moneyed town. Summit is super pricey and super-rich.
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