How much house can i afford with 50k? (duplex, 1%, mortgage)

[xcessbeast]

Hi guys i was just wondering what type of priced house i can afford. I make 50k a year and have no debt or loans out. I was on Realtor and it was saying that this 300k house has a mortgage of 1k. Its in somers ny and was just wondering if i can actually afford it. If not whats the max you guys recommend. Also what would m ratios be?

[Snikt]

Maybe 1K with 20% down? Do you have the money to put $60,000 down on a 300K house so you can avoid PMI as well?

With PMI and Escrow (insurance/tax) Id say you're looking more like 130-170k house/condo if you want a true $1000/month payment

[kizlykdm]

There are so many variables because it depends on your lifestyle as well. Personally, I always recommend to my clients to try to get a 15 year mortgage instead of a 30. Your payments are about 40% more, but your interest rate is typically 1% lower and of course the mortgage is for 1/2 the time. When you look at an amortization schedule, the amount of money saved over the life of the loan is tremendous and the savings do begin immediately.

With that said, don't forget about:

1. Private mortgage insurance (if you aren't putting 20% down).
2. Property taxes
3. House Insurance
4. Possible HOA fees

If you have a condo / townhouse -- your HOA monthly fees can be quite substantial.

Once you have all of that, then consider what an ok monthly payment is (while also having a fund for house repairs etc.). Then you can see what you can afford and the type of property (condo, townhouse, single-family, duplex) that fits best for your needs.