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I just tried the bankrate.com mortgage calculator..it give the same affordable mortgage payment, independent of the expenses entered....Nice!....
It always works for me. If you want to know the monthly payment, here is the link to calculate that at bankrate.com Mortgage calculators -- Bankrate.com
I won't buy a $350K house with a $80K/year income. But to afford houses at this range you really don't have to earn >140k to buy and borrow money.
Not in Chapel Hill/Carrboro, where we're planning to move. 350K just gets you in the gate, pretty much.
I was looking over those budgeting figures for someone who makes 80K, and the take home pay is much more than we bring home with 100K. One thing people have to really think about is balancing home payments with their 401Ks. I actually have 12% of my income taken off the top pre-tax and put in my 403B (401K for folks who work in higher education). We're also planning to max out our Roth IRA, and have a 529 for our child's college fund. So, even though we rarely have car payments (we tend to pay cash or purchase far less than we can afford so we have low payments), we may not be able to push to the extreme for a home. The new guidelines seem to suggest you can go up to 3 times your annual income, but that would make me nervous. A little cushion is better, especially if you want to have anything resembling a life. I don't want to die without seeing some of the world out there, and maxing out on a mortgage means less traveling.
On the other hand, I constantly bump into people who have giant car payments on status cars, wear designer clothes and generally have lots of material possessions, and as a result buy much less house than they would be able to afford if they were less concerned with impressing their neighbors. When you think about it, which is preferable? To have a 350K house, 2 fancy cars, and designer clothes, or a 450K house, a couple of decent but non-status cars, and clothes without fancy labels? Houses are investments. Cars and clothing are not. And don't even let me get into the large numbers of people who make great money but fail to use their companies' 401K programs and end up with zilch for retirement.
When you think about it, which is preferable? To have a 350K house, 2 fancy cars, and designer clothes, or a 450K house, a couple of decent but non-status cars, and clothes without fancy labels? Houses are investments. Cars and clothing are not. And don't even let me get into the large numbers of people who make great money but fail to use their companies' 401K programs and end up with zilch for retirement.
Um neither. Ideally one would pick a house in a price range that would allow them to live comfortably. "Living comfortably" is highly subjective. In my own view, life is not limited to house+car+clothes. Or saving for retirement for that matter. I'd rather have spare money to travel or do other things I enjoy. But I digress.
Let another senior pipe in. One day you will want to retire. One day you MAY be able to retire. Will they be the same age? It is better to have the house paid for and the income to enjoy and 20 plus years of life to enjoy it in. Plan to put yourself in that position. Do not sacrifice your retirement future. Remember the three pillars of retirement are/use to be:
Pension(lucky if you have)
Investments( Tax deffered rule)
Social Security( Hopefully)
one and three you don't have control of the middle one you do. Your house is a major LONG TERM investment. A new house at retirement paid for is the best of all worlds. New house, modern and not going to be a money pit of repairs for a number of years. The age of your house is a factor as you plan for retirement. Thats what made Carolina so popular for retirees up north.
Let another senior pipe in. One day you will want to retire. One day you MAY be able to retire. Will they be the same age? It is better to have the house paid for and the income to enjoy and 20 plus years of life to enjoy it in. Plan to put yourself in that position. Do not sacrifice your retirement future. Remember the three pillars of retirement are/use to be:
Pension(lucky if you have)
Investments( Tax deffered rule)
Social Security( Hopefully)
one and three you don't have control of the middle one you do. Your house is a major LONG TERM investment. A new house at retirement paid for is the best of all worlds. New house, modern and not going to be a money pit of repairs for a number of years. The age of your house is a factor as you plan for retirement. Thats what made Carolina so popular for retirees up north.
Last edited by TuborgP; 08-23-2007 at 02:14 PM..
Reason: double entry
How much do you have to make to afford a $350K house
Quote:
Originally Posted by urbywan
A tax rate down here of 1.20 is average now in towns like cary, Raleigh , Apex Fuquay etc. That means you are closer to 4K in taxes on a 350K home down here. Interest rates are now up near 6.6% 30 year fixed, then there is the electric bill two zone ac gas bills for heat water sewer trash Cable TV DSL Phones GASOLINE car insurance homeowners insurance Life insurance. IF your cars are paid for that will help, however many have leases and loans. These are all fixed costs. Then there is medical insurance, copays and stuff. All before Food, vacations, haircuts, nail salons, clothes, lawn care GOT KIDS? Boy ya need a bunch of money to live.
Lets look at the numbers... 270 mortgage at 6.5% is 1600 P&I
Tax Real estate 1.20 per 100 value 370
Utilities Electric/ Nat Gas say august 250
Water sewer trash 100
DSL/ TWCable/ Wireless phones/landline 225
Gasoline 2 cars two jobs 200
Insurance homeowners and autos 200
Well we are close to 3000 per month already crazy huh when you look at the numbers. Then say add in car payments of say 400 a month food 700 a month entertainment savings yes you need to make some dollars.
Remember that you can adjust your tax withholding and get take more money home. The mortgage interest helps with your taxes, too. And, if you don't adjust that tax withholding, and you get a huge refund back come April, you can always use that money to fund your IRA. Big mortgage is not all bad news. Other than the joy of owning your own home, it is a good investment and you can always leverage the equity in your home. $350K mortgage is not too huge for your income.
Location: Ohio, but moving to El Paso, TX August/September
434 posts, read 1,653,133 times
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Quote:
How much do you have to make to afford a $350k house
I guess I should have edited my first response :P
We could get approved for 400k for our next house, but there is no way we are even going to look at more than 300-350. My goal is 325 or less.
In terms of how much to qualify for 350? Let's just say, a comfortable but not rich income.
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If you want to know the monthly payment, here is the link to calculate that at bankrate.com
How much do you have to make to afford a $350K house
