Finances Question???????????

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Can a single physician reasonably afford a $ 1,000,000 30-year mortgage on a property under these conditions:
1) $ 260,000 salary
2) $ 35,000 malpractice insurance premium ($ 2916 per month)
3) $ 1,152 student loan repayment PER MONTH
4) $ 1,345 per month association fee (with property)

2 Comments
  1. Reply
    sassy25
    April 29, 2011 at 11:59 pm

    No. That salary means you are in the 33% Federal tax bracket plus 10% Social Security and Medicare Then State taxes most average around 9% So you get to keep 125k of your salary.
    You net 10,417 a month. Of that 5413 is your your mandated expenses. Leaving you 5K to live on. Mortgage 4k, utilities, car insurance, house insurance, property taxes, school taxes, food, clothing, transportation and so on.

  2. Reply
    Gilbe-BN
    April 30, 2011 at 12:25 am

    By my rough calculations the single physician would have about $ 5,000 a month left over (after mortgage payments, income taxes and listed expenses) for all of his other obligations so this mortgage is do-able, but “reasonable” depends on his lifestyle and living expenses and his personal and social goals (save for the future, marriage and family, donate to a charity, take a sabbatical for further education, etc). Personally, I would opt for less house and more money in the bank, unless the place was my Shangri-la. He needs to crunch ALL the numbers and examine his wants, needs, and desires with an eye to the future.

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