Can I afford this home?
Hello all, I know this is a common question, but I’m just looking for some reassurance during the house hunt specific to my situation.
My current income is $ 55,000 gross per year, and I have no outstanding debt, everything is paid off monthly. I have about $ 25,000 in savings, and have been pre-qual’d for an FHA loan, my middle credit score was 765 when they pulled them.
If I bought a house for somewhere in the area of $ 225k, would I be overextending myself? That would put my monthly payment for PITI in the mid $ 1700’s. My net income per month would leave me with about $ 1000 left to spend on EVERYTHING else, does that seem possible?
I definitely don’t have an expensive lifestyle, and the reason that I am stretching on this purchase is because I really like the house and it has everything that I want, and I think it has enough expansion potential that I may never need to move.
Real world examples of income vs mortgage/utilities/other monthly expenses would be appreciated. I live in CT, but would love to hear from anyone.
Thanks for any advice you can offer!
Thanks for all the great responses.
I’ve talked to a broker, and I can qualify for at least 250k, obviously too much.
I have a car all paid off in good shape. My drive to work is 15-20 minutes, so I end up spending 20-30 on gas probably every 2 weeks or so.
I will be getting a raise in July, should be around 2.5%, the usual per year around here is 3.5%. The job is about as stable as I could hope for.
I’ve been putting 10% into my 401k (Im 22) and could easily cut that back to the matched 3% to put my monthly to 2800 (after life/health/dental insurance).
I should definitely qualify for the $ 8k. I will be putting ~15k into down and closing, leaving me with 10k in the bank. It would take me another year or so to save up a down for a conventional, and then who knows where the market will be.
I know this may be tight for a couple years, but it’s also an amazing location and has everything I think I’ll ever want, and plenty of room to expand.
[ Grand Architectural Pleasure : Follow the Lines and be inspired ] @ The Swedbank Central Office Tower, Vilnius, Lithuania
Swedbank AB (formerly called FöreningsSparbanken) is a leading Nordic-Baltic banking group with 9.5 million retail customers and 534,000 corporate customers in Sweden, Estonia, Latvia, and Lithuania. In Sweden, the group has 377 branches. In the Baltic countries, it has another 224 branches. Elsewhere, the group is present in Copenhagen, Helsinki, Kaliningrad, Kiev, Luxembourg, Moscow, Marbella, New York, Oslo, Shanghai, Saint Petersburg, and Tokyo.
On 8 September 2006, FöreningsSparbanken AB changed its name to Swedbank AB. The name change took place in the afternoon local time, after the Swedish Companies Registration Office registers the changes in the company’s articles of association. On the same date the subsidiary AB Spintab changed its name to Swedbank Hypotek AB (Swedbank Mortgage AB in English). At the same time, FöreningsSparbanken Jordbrukskredit AB changed its name to Swedbank Jordbrukskredit AB. Other subsidiaries will change their names at later dates.
The first Swedish saving bank was founded in Gothenburg in 1820. In 1992 a number of local savings banks merged to create Sparbanken Sverige ("Savings Bank Sweden"), which was known simply as Sparbanken ("The Savings Bank"). In 1995 this bank was listed on the stock exchange. In 1997 the bank merged with Föreningsbanken and the names were combined to create FöreningsSparbanken. During the late 2000s global financial crisis, Swedbank accepted government assistance due to its losses from loans made to neighboring Baltic economies.
Swedbank is listed on the Stockholm Stock Exchange. The bank has no clear majority owner, but is mainly owned (7.8%) by Folksam. The second largest owner is a number of local savings banks, controlling 7.6% of the stocks. Also, a number of large financial institutions control small blocks of shares in the bank but none of these exceed 5%. 24% of the shares are owned by foreign individuals and companies.
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