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holy sh** - you make $72K a year and were preapproved for a $300K loan? do lenders EVER learn?
I thought same thing.. Its going to be VERY tough to meet a $300k mortgage making 72k.. VERY hard..
I can tell ya from experience as we make quite a bit more then 72k and with a 280k note, we don't have a whole lot left over at the end of the month after paying all the bills. The mortgage is only a small part of your monthly expenses.
I thought same thing.. Its going to be VERY tough to meet a $300k mortgage making 72k.. VERY hard..
I can tell ya from experience as we make quite a bit more then 72k and with a 280k note, we don't have a whole lot left over at the end of the month after paying all the bills. The mortgage is only a small part of your monthly expenses.
The numbers are not that hard to compute:
Your Salary: $72K, after taxes is between $50,400- $56,250
or $4200-$4,688/month
Your mortgage and taxes with PMI on, let's say $270k note (10% down on $300K) will be about $2,250/month Mortgage Calculator
Your Home owners insurance is $83/month
Your Car Payment is $250/month
Your Car insurance is $100/month
Your grocery bill is $500/month
Your Cable/phone/internet Bill is $100/month
Your PSEG Bill is $200/month
Total Estimated Recurring Monthly Expenses: $3,483
That leaves you with about $750-$1,200/month leftover to cover: healthcare(since even if your employer pays you are probably on the hook for some portion of it), savings, cell phone( if not paid for by employer),general spending money, commuting expenses,gas and entertainment.
As you can see it is definitely doable but does not leave you with much margin for error. It also does not account for the money that you will have to put into the house for renovations or repair. not much in your house will cost you less than $750 to fix.
it's more about knowing all the facts and making your own decision, it's a judgement call. My wife and I have a similar mortgage and my salary alone is more than double that, but I'm not going to sit here and tell you it can't be done. I'm just saying I wouldn't do it.
Your Salary: $72K, after taxes is between $50,400- $56,250
or $4200-$4,688/month
Your mortgage and taxes with PMI on, let's say $270k note (10% down on $300K) will be about $2,250/month Mortgage Calculator
Your Home owners insurance is $83/month
Your Car Payment is $250/month
Your Car insurance is $100/month
Your grocery bill is $500/month
Your Cable/phone/internet Bill is $100/month
Your PSEG Bill is $200/month
Total Estimated Recurring Monthly Expenses: $3,483
That leaves you with about $750-$1,200/month leftover to cover: healthcare(since even if your employer pays you are probably on the hook for some portion of it), savings, cell phone( if not paid for by employer),general spending money, commuting expenses,gas and entertainment.
As you can see it is definitely doable but does not leave you with much margin for error. It also does not account for the money that you will have to put into the house for renovations or repair. not much in your house will cost you less than $750 to fix.
it's more about knowing all the facts and making your own decision, it's a judgement call. My wife and I have a similar mortgage and my salary alone is more than double that, but I'm not going to sit here and tell you it can't be done. I'm just saying I wouldn't do it.
which is why with his gf, and the fact that he said he doesn't have other debts, he should be plenty fine. the issue i see is his emergency fund. he's going to deplete his savings fully to buy a place, no emergency fund. you gotta have 6-12 months (towards 12 depending on a few factors, like how secure your jobs are).
homeowners: $60/month (but already included in my mortgage payment)
car payment: depends on if you have a car of course and if it's paid off
car insurance: 2 cars = $133/month
groceries: $400/month (about to go up, quite a bit, with an infant coming!)
cable/phone/internet: $100/month is fair
cell: $70/month
pseg: i budget $200/month which is far too much in the summer, but evens out in the winter.
Your Salary: $72K, after taxes is between $50,400- $56,250
or $4200-$4,688/month
Your mortgage and taxes with PMI on, let's say $270k note (10% down on $300K) will be about $2,250/month Mortgage Calculator
Your Home owners insurance is $83/month
Your Car Payment is $250/month
Your Car insurance is $100/month
Your grocery bill is $500/month
Your Cable/phone/internet Bill is $100/month
Your PSEG Bill is $200/month
Total Estimated Recurring Monthly Expenses: $3,483
That leaves you with about $750-$1,200/month leftover to cover: healthcare(since even if your employer pays you are probably on the hook for some portion of it), savings, cell phone( if not paid for by employer),general spending money, commuting expenses,gas and entertainment.
As you can see it is definitely doable but does not leave you with much margin for error. It also does not account for the money that you will have to put into the house for renovations or repair. not much in your house will cost you less than $750 to fix.
it's more about knowing all the facts and making your own decision, it's a judgement call. My wife and I have a similar mortgage and my salary alone is more than double that, but I'm not going to sit here and tell you it can't be done. I'm just saying I wouldn't do it.
any decision in life is a judgment call, but this has "devastation potential" written all over it. he should be putting at least 6% in retirement (if offered) - so that's about $375/mo. Also should be putting a few hundred away in emergency savings. That brings that $750-$1200 down quite substantially. And when push came to shove, 95% of people aren't going to forgo the iphone for savings.
any decision in life is a judgment call, but this has "devastation potential" written all over it. he should be putting at least 6% in retirement (if offered) - so that's about $375/mo. Also should be putting a few hundred away in emergency savings. That brings that $750-$1200 down quite substantially. And when push came to shove, 95% of people aren't going to forgo the iphone for savings.
that'd be $360/month pretax, which is about the same as $250 net pay.
take home - $4,583.00
mortgage - 1512 (on 290k @ 4.75%)
taxes - $500 (6k a year)
homeowners insurance - $40
condo fees - $200
PMI -$50
car ins -$100.00
gas -$100.00
...note- no car payment listed here...
utils -$200.00
cable -$40.00
cell phone -$60.00
IRA -$413
Food and spending money -$800.00
house fixing budget -$225.00
health insurance -$250.00
life insurance -$50
also no commuting costs here. i know a daily into NYC can cost what... 250 or 300 bucks a month???
The GF has student debt though... but if they could pay that off, then bank what comes in on her 45k - one way or another (some liquid and some more retirement maybe) for a few years they would not have to worry much if the OP loses his job. since he is a computer guy in NYC he can just go get another job the next day
I wouldnt do the above with no other money coming in or nothing in savings.
i think it's on the edge. but that's what the bank gave him...what he "could" afford. not what he "should", but what he could, based on his income. he can do it. plus, it's leaving out his gf's income. so he could easily do it.
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