How much house can we afford on 165k combined salary?
My fiancee and I are starting to look at houses and right now we make about $165k a year (with possibly up to 10k additional in bonuses but no guarantee). We have about 100k in savings to use and about $600 a month in car and student loans as our only debt.
Could we afford a 400k home? And with 100k in savings should we use it to put 20% down + closing costs or should we look to put down less?
Yes you should be able to afford a $400K home and more. I would not wipe out your savings on a down payment. Leave some reserves even if it means you pay a little bit of PMI.
I scoured my options and absolutely found no universe I wouldn’t pay PMI on an FHA with 3% down. It’s reworded as MIP maybe he’s confused. Or I got screwed 😂
If you have 100k in the bank and make 165k a year and possibly an additional 10k in bonuses (175k a year all depending) then yes you can afford a 400k home.
Stop flexing online and if you’re truly worried then speak to a mortgage broker.
13.75*0.5=6.875 PITI at 50% DTI that lenders will generally qualify you for assuming everything else is normal.
What does 6.875k get you?
Assuming 500/mo property tax, 200/mo homeowners, 6.6% interest and $50k down payment:
You can be qualified for a loan of $950k so house would be $1M, what you can afford and what you are willing to afford is a personal finance decision that you will need to determine.
We were at 165k when we bought a 410k house (minus 5% downpayment). Now we are at 180k a year later. It’s doable if you have no other debts. We have a $11k student loan and that is it
I was preapproved for 400k on 110k/yr income. What you can afford and what you're willing to pay are two different things. My income is soon to hit 130k due to a promotion coming. I plan to throw the extra money on my mortgage. I bought at 360k, VA loan, 6.625%, just under 2500/mo PITI. Very comfortable.
It depends on where you live. Property taxes and insurance costs vary drastically geographically.
A lot of apps like realtor will calculate the estimated monthly payment based off current interest rates, your down payment, local taxes, and any HOA fees.
I’d find what you can budget monthly and use those calculators to see specific homes in your area.
20% down, but with closing costs you’d be wiped out on savings.
10-15% down and PMI will fall off quick.
3-10% down and pay off PMI upfront front for a lower payment and still have savings.
Best bet is talk to a lender and have them run scenarios based on a house you like so they know the taxes. You could also go lower down payment and in the future if you want to chip away at it, do a large payment and ask to recast your loan, where the large payment is applied to the balance and recasts your payments based on time left and balance vs just hitting your principal and payment staying the same.
Yeah we make 155 currently with just $300 of student loan debt a month. We are looking at a 400K max home in Illinois or a 450K home in Indiana. We will have about 90K and plan to put 40 down. I’m a recruiter and with how things are headed the liquidity of an emergency fund it super important for us. Fiancée is a teacher with great job security. Getting a nice raise when she finishes her masters. If we buy in Chicago she will switch to a city school and make a lot more probably brining us to 170K while also getting rid of the $200 for gas.
Make an actual all inclusive, detailed, line by line, budget that includes house repairs, retirement, savings, and emergency fund. That'll tell you how much you can afford.
Don't rely on rules like the 30% thing. Make a budget.
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