Can we afford to buy this house?

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My husband and I together earn $ 320,000 a year. We are considering buying a house in Princeton, NJ that has a sale price of $ 1,355,500. Could we afford it?

8 Comments
  1. Reply
    Jasmine
    November 3, 2011 at 7:34 pm

    i would say no, but it depends on how much the mortgage is. if you can get a good mortgage for it, then yes, but i would probably try something in the 800s.

  2. Reply
    luigi360
    November 3, 2011 at 7:40 pm

    This question has multiple variables, but in general, you could pay this house off and still live comfortably in less than 6 years.

  3. Reply
    Steve D
    November 3, 2011 at 8:06 pm

    Nope…unless you have about a $ 375,000 down payment. Rule of thumb for a mortgage is about 2.5 to 3 times your salary. At the top end, you can get a mortgage of about $ 1 million, so you come up a bit short without the down payment.

  4. Reply
    beaf and chedder makes it better
    November 3, 2011 at 8:52 pm

    you could but I think you shouldn’t get it because you will probably not have enough to do everything-
    no vacation
    no buying stupid little things
    also if you have kids you wouldn’t have enough

    IDK if it makes sense though
    bottem line I wouldn’t
    Its all up to you though

  5. Reply
    dude with a chick avatar
    November 3, 2011 at 9:06 pm

    whats your debt/income ratio?

    do you have $ 50,000 in debt? cars, credit cards, loans, etc etc?

    if you have NO debt, your taxes are $ 3500 (theyll be a lot higher), your monthly payment will be $ 7,500 per month, with a 5% interest rate.

  6. Reply
    Pat
    November 3, 2011 at 9:16 pm

    If you have to ask, you can’t afford it.

  7. Reply
    Qwert
    November 3, 2011 at 9:23 pm

    yes

  8. Reply
    linasavaye
    November 3, 2011 at 9:27 pm

    Realtor.com has a home affordibility calculator. All you need is price of the loan, your gross income and how much you have for down payment. It will tell you the maximum house price you can afford.

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