Need honest opinions. Can I afford this house ? (PMI, credit card, loan)

[heydade]

Here is the deal...my mortgage including taxes and insurance would be 2,600.

take home salary for me : 4500/month
take home salary for wife : 2300

= 6,800 combined take home

-HOA dues 46
-Electricity 200
-water&garbage 70
-car payments 900
- cable 85
- cell phones 150
- car insurance 200
- life insurance 60
- groceries 400
- internet 65
- credit card debt 300
- gas 400


We are left over with about 1424 a month. Would you buy a home that left you with 1,424 a month when all is said and done. And yes, I have a pension system so I am contributing to my retirement...it is automatically taken from my paycheck. What do you think ? I say yes..lets go for it...she says no.

[renriq02]

not sure what the total mortgage payment will be, but it looks like you can afford it.....BUT the wife is always right.

You're probably going to get yelled at for going on a forum to talk about her.

Originally Posted by heydade

Here is the deal...my mortgage including taxes and insurance would be 2,600.

take home salary for me : 4500/month
take home salary for wife : 2300

= 6,800 combined take home

-HOA dues 46
-Electricity 200
-water&garbage 70
-car payments 900
- cable 85
- cell phones 150
- car insurance 200
- life insurance 60
- groceries 400
- internet 65
- credit card debt 300
- gas 400


We are left over with about 1424 a month. Would you buy a home that left you with 1,424 a month when all is said and done. And yes, I have a pension system so I am contributing to my retirement...it is automatically taken from my paycheck. What do you think ? I say yes..lets go for it...she says no.

[heydade]

the total mortgage would be 2,600......Principal and interest would be 1,800 and taxes/insurance would be 800 extra so the total is 2,600. I am in South Florida...can't you tell ? it sucks

[1AngryTaxPayer]

If you can't make that on an extra 1400 a month then something is wrong.

[linicx]

Divide the total take home pay by 4. This is the amount you can afford to pay monthly INCLUDING the mandatory PMI if your down payment is not twenty (20%) percent.

In addition to a house and car loan, you can only afford ONE other monthly short term debt like a charge for a washer. Only one of htese short term debts at a time, please. Too many of the niggling little bills cause huge money problems you didn't anticipate.

Choose wisely, friend. .

[VictorBurek]

Originally Posted by linicx

Divide the total take home pay by 4. This is the amount you can afford to pay monthly INCLUDING the mandatory PMI if your down payment is not twenty (20%) percent.
In addition to a house and car loan, you can only afford ONE other monthly short term debt like a charge for a washer. Only one of htese short term debts at a time, please. Too many of the niggling little bills cause huge money problems you didn't anticipate.

Choose wisely, friend. .

PMI is not mandatory! You can do a 2nd mortgage or lender paid mortgage insurance. So, i would say the PMI is optional, you have choices each with benefits and drawbacks.

[VictorBurek]

Oh, forgot to add to earlier post, your debt ratio which lenders would look at is low enough to qualify. So according to the lender you can afford it but remember you have to write the check each month.

[f_m]

Maybe after you get rid of 1 or both car payments. Kind of expensive cars I would say.

[Keeem]

$1400 could be a nice buffer one month and you could find it being seriously deficient another month. A root canal, new eye glasses, flooded basement, or a pet emergency and you're now over your monthly income. Also, what if one of you loses or takes a pay cut? I think your wife is right, keep looking for something that won't worry either of you and you can enjoy a new, less costly home - and save for fabulous vacations or home improvements!

[Moonwalkr]

I would definitely side with the wife...