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$1,000,000 house, 20% down, 800K mortgage. Assuming taxes in the $15K range. I would feel comfortable doing that on a $200K salary.
$1250 taxes/month, $2800 interest (4.2%@30y), 1100 princ
after tax breaks (if you do not hit AMT), then it you doing about $4K out of pocket a month.
$200K salary, assume $120K take home, that is $10/month
The 25%-36% rule are for people that have lower salaries and "other" expenses are a higher percent of total income
When I was looking for a house (and I am below the $200K salary), they were offering me loans at 4.25X my salary. I thought that was crazy (VERY high credit score)
everything is bigger on a big million dollar house. maintenance, utilities, taxes, etc.
that should not be neglected. Pretty sure I know people with 500+ a month heating bills.
yeah, plus the wife's taste is probably more expensive also. you cant push your budget buying a $1 million house and then expect your wife to shop at walmart for her outfits and drive a corolla.
everything is bigger on a big million dollar house. maintenance, utilities, taxes, etc.
that should not be neglected. Pretty sure I know people with 500+ a month heating bills.
Yea, electric bills are higher. I don't use most of my house, so I try to use zones when I can. It's very effective with heat, but less so in the summer with AC.
yeah, plus the wife's taste is probably more expensive also. you cant push your budget buying a $1 million house and then expect your wife to shop at walmart for her outfits and drive a corolla.
I don't have a wife, but that's something we would agree on. I don't want my wife shopping at Walmart or driving a Corolla.
It's a scale thing. Some people drive Kia's and shop at thrift stores, others drive Porche's and shop at Tiffanys. Nothing wrong with either, as long as you can support each.
My point is that in this country, many need to change their perception / expectation of how much home they can afford (even if it is an average-sized one).
My point is that in this country, many need to change their perception / expectation of how much home they can afford (even if it is an average-sized one).
Yup- but you're buying a "status address" in Summit, so that makes an 80 year-old, 2,000sf house with bad decorating, steam radiators and a drop ceiling in the wood-paneled "rumpus room" worth $1 million to some folks. Ohh- but it's got granite countertops.....lol
i like where i live and for $1 million i could probably get a relatively new house about 4k square feet with about 1 acre of propery.
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