Job pay/ House sizes (Dallas, Plano: sales, mortgage, home equity loan)

[hoffmtl2]

I am wondering how much someone needs to make down in the Dallas area on average to afford a $250,000 home with taxes, etc. I would be coming from the IL/WI area and I know that it seems like we make more here but the houses are expensive here. Also when it says a house is 3,000 square feet does that include the basements?

[momof2dfw]

Originally Posted by hoffmtl2

I am wondering how much someone needs to make down in the Dallas area on average to afford a $250,000 home with taxes, etc. I would be coming from the IL/WI area and I know that it seems like we make more here but the houses are expensive here. Also when it says a house is 3,000 square feet does that include the basements?

We don't have basements. There are a FEW that do but it is by far NOT THE NORM. As for the square footage listed on MLS, that is for "living space" and does not include the garage or in enclosed porch. Only if the area is "improved" w/ heat and a/c does it count.

As for the income needed for a $250K home there is more that goes into it than just ones income. Their debt ratio plays a big part too.

[nsumner]

Originally Posted by hoffmtl2

I am wondering how much someone needs to make down in the Dallas area on average to afford a $250,000 home with taxes, etc. I would be coming from the IL/WI area and I know that it seems like we make more here but the houses are expensive here. Also when it says a house is 3,000 square feet does that include the basements?

There are no basements in about 99% of the homes in North Texas because the soil here cannot support it.

The square footage that you see advertised should be the living space only. Garages are not included.

Some builders advertise the garage included but they refer to it as "the building plan" you have to look at the fine print and breakdown.

[CallMeLaura]

For 100% financing, very roughly count on a monthly payment of 1%. So, a $250,000 house would be $2,500/month. That will cover PITI, but not utilities or repairs.

How much you need to make to be able to 'afford' that is up to the rest of your spending habits. If you have two luxury car payments and eat out all the time, you'll need more than if your cars are paid off and you like rice and beans.

Both Illinois and Wisconsin have state income tax, which can be hefty. However, your federal tax may go up because you don't have it to deduct.

Gas is cheaper here most of the times, by 10-15 cents (unless you get gas in Chicago, then it's at least twice that). Sales tax is 8.25% in metropolitan areas. I believe Chicago is higher (9%?) but Wisconsin much cheaper (somewhere in 6% range?).

I've seen different things with utilities. We actually have a lower electric bill down here, but a 30 year newer house. A lot of places down here will have electric heat, which adds up quick, but you won't need it nearly as much as up there.

Food seems about the same to me, in that I spend roughly the same amount a month. For individual items, though, I don't know.

[calmdude]

Since this is important, you will need to do quantitative calculations. Most of these can be done for free. Go to Compare Mortgage Rates | CD Rates | Home Equity Loans Mortgages Quotes Best Rate Calculator Bankrate.com and find out the current interest rates in your area, the amount of house you can afford etc. Else, people will only be able to help you with qualitative stuff which may not reflect your personal situation at all.
Good luck!

[hoffmtl2]

We would be looking for a house with hopefully at least 1/3 acre in an area with good schools. In WI here for our 2,000sq ft house we pay $4,000 in taxes. How does that compare to TX? I am trying to figure out TX or North Carolina! It's hard

[nsumner]

Where will you be commuting to in Dallas? that would help narrow down areas to recommend to you. Taxes here are based on the tax assessed value of the property. The tax rate varies between 1.75 and 2.9.

As you probably know, we don't have state income tax here but as you see our taxes are higher than the rest of the country which is better than a wash. So let's say in Plano a house with 2000 SF tax assessed at 130K, the taxes would be $3100.

We also have homestead exemptions here which would make your payment even lower. Not sure if you have it in WI. [MOD CUT]

Naima