U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [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 07-14-2012, 08:58 PM
 
Location: now nyc
1,458 posts, read 3,808,052 times
Reputation: 1265

Advertisements

If there was a house listed for $230,000 and I had a $50,000 down payment, would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?

What is the most that somebody with a salary of $45k could COMFORTABLY AFFORD? (assuming they have no kids and live a modest lifestyle by most ppl's definition)

And assuming that annual property taxes were $6,000.
Reply With Quote Quick reply to this message

 
Old 07-14-2012, 09:04 PM
 
Location: Portland OR
203 posts, read 113,402 times
Reputation: 179
With interest rates as low as they are, I think you should be able to afford the $180,000 mortgage. But those taxes! Your mortgage lender will tell you how much your monthly mortage will be and hopefully the taxes will be included in that payment; otherwise you have to set that money aside yourself each month.
Reply With Quote Quick reply to this message
 
Old 07-14-2012, 10:42 PM
 
Location: Phoenix AZ
6,144 posts, read 12,056,680 times
Reputation: 9875
They could *comfortably* afford the taxes.
Move somewhere where you can afford the government.
Reply With Quote Quick reply to this message
 
Old 07-14-2012, 11:38 PM
 
Location: Long Island
9,415 posts, read 19,998,708 times
Reputation: 5142
Quote:
Originally Posted by LongIslandPerson View Post
If there was a house listed for $230,000 and I had a $50,000 down payment, would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?

What is the most that somebody with a salary of $45k could COMFORTABLY AFFORD? (assuming they have no kids and live a modest lifestyle by most ppl's definition)

And assuming that annual property taxes were $6,000.
It'll cost you $600/month for taxes and insurance alone; add principal and interest (depends partly on how high your credit score is) and you're at $1400-$1500. You still haven't added the cost of utilities (oil is higher than gas on Long Island at the moment), possible car payments, car insurance (maintenance?) and gasoline. Chances are, you want to eat, and oh yeah, you will have to pay some income taxes as well... And then there's the occasional maintenance and some repairs...

Can it be done? Probably, but I wouldn't say "comfortably"; you'd have to watch your "pennies". That's provided you can get a mortgage with your income. If you want to talk to someone without obligation, send me a DM and I'll give you a name and number of someone who'll tell you.

Also, you'll need $$ for closing costs...

Good luck!
Reply With Quote Quick reply to this message
 
Old 07-15-2012, 05:29 AM
 
Location: The Triad (NC)
30,225 posts, read 66,741,855 times
Reputation: 35701
Quote:
Originally Posted by LongIslandPerson View Post
What is the most that somebody with (an income) of $45k could COMFORTABLY AFFORD?
Beyond the loan... including Taxes, insurance, and ALL utility bills... no one should commit
themselves to more than 1/3 of their NET income for those housing costs. That's comfortable.

Even with ZERO income tax or FICA deductions and even getting food stamps...
your maximum housing allowance would be $15,000 per year. For EVERYthing.
A far more realistic figure is $1100 ... maybe stretched to $1200. For EVERYthing.

If $500 of that is going to taxes, maybe $100 for insurance and probably $250 for the utilities...
that leaves a MAXIMUM of $350 per month for Principle and Interest. That's not a lot of house.
Reply With Quote Quick reply to this message
 
Old 07-16-2012, 08:02 AM
 
4,159 posts, read 7,926,751 times
Reputation: 4955
Quote:
Originally Posted by LongIslandPerson View Post
. . . would I be able to afford payments on a $180,000 mortgage (30 yr fixed rate) if I had an salary of $45k a year before taxes?
. . .
And assuming that annual property taxes were $6,000.
Start with $45,000.
Subtract taxes.
Subtract $6000.

What's left? What are your other expenses?

When I bought my first house I borrowed $140,000 at about 6.5. I think property taxes were about half of yours, but I also had $200 HOA dues. My salary was about $42,000. Also single with no kids. I did fine.

But I had no car payment, low utilities, no cable, no cellphone, and didn't go out much.
Reply With Quote Quick reply to this message
 
Old 07-16-2012, 09:15 AM
 
Location: Wisconsin
7,214 posts, read 8,281,761 times
Reputation: 7754
It sounds pretty tight to me. I wouldn't call it "comfortable." It's probably "doable", but I'd rather have more breathing room than that.
Reply With Quote Quick reply to this message
 
Old 07-16-2012, 12:45 PM
 
Location: Southern California
12,700 posts, read 11,710,422 times
Reputation: 35165
Those taxes are insane.

Most on this forum will probably tell you to spent like 1.5x to 2x your annual salary on a house when in reality you SHOULD be ok at 3x-3.5x (depending on expenses). You are at 4x so it would be somewhat tight but doable if you can keep your other finances under check and you have a steady job.
Reply With Quote Quick reply to this message
 
Old 07-16-2012, 02:34 PM
 
Location: Long Island
9,415 posts, read 19,998,708 times
Reputation: 5142
Quote:
Originally Posted by Mr_Geek View Post
Those taxes are insane.

Most on this forum will probably tell you to spent like 1.5x to 2x your annual salary on a house when in reality you SHOULD be ok at 3x-3.5x (depending on expenses). You are at 4x so it would be somewhat tight but doable if you can keep your other finances under check and you have a steady job.

LOL for Long Island, those taxes are LOW
Reply With Quote Quick reply to this message
 
Old 07-16-2012, 03:32 PM
 
Location: Phoenix AZ
6,144 posts, read 12,056,680 times
Reputation: 9875
Quote:
Originally Posted by Elke Mariotti View Post
LOL for Long Island, those taxes are LOW
In Phoenix, taxes on a $230k home would be under $2k.
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 > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 36, 37 - Top