How much can a person afford when buying home with a income of 58,000 a year?

Home Forums Buying Your Home How much can a person afford when buying home with a income of 58,000 a year?

This topic contains 9 replies, has 2 voices, and was last updated by  admin 2 years, 9 months ago.

Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • #41988

    admin
    Participant

    is it differnt from state to state

    #182163

    admin
    Keymaster

    Entirely depends on where you live. Here in Los Angeles, you’d have trouble buying a shoebox on 58K a year. =(

    #182164

    admin
    Keymaster

    If you have a good deposit saved up you can. At least 15-30% down.

    #182165

    admin
    Keymaster

    I’m not sure. I good rule of thumb is no more than 30% of your income should go toward your rent. Check out various articles at about.com:

    #182166

    admin
    Keymaster

    Standard figure would be 30% of your income. For example: Your monthly gross income is 3000.00 then you could afford a payment of $ 900.00. So, how much house you can afford would depend on how much you put down, how much the interest rate is, etc.

    #182167

    admin
    Keymaster

    Well I know this couple who bought a 1200 sq.ft brand new home for about 250,000. together they made about 60-70 grand a year.
    I think your problem will be the one income deal…most banks want to see tow incomes, hence couples.
    But you could probably buy a nice new condo or townhome or maybe a smaller older home.
    Go to MLS and try their mortgage calculator. BTW the best time to buy is RIGHT NOW because their is such a huge real estae boom and if you dont get in on it now you will miss the boat, even if you buy a small home that is good!

    #182168

    admin
    Keymaster

    whatever your monthly mortage will be it shouldnt be more than 10 percent of each pay check you get. So if you get paid every two weeks, then ten percent of once check should be around how much you can expect to pay for a mortgage (monthly) if all the income y0u have is 58,000 a year, you cannot afford something more than 100,000. you must consider down payment, and mortgage. It can be different from state to state however becuase i know for a fact that real esate is all about LOCATION LOCATION LOCATION. For example property in Alabama you can get a good house with that salary (depending on location of Alabama) in NYC on the other hand you would get an apartment liek one bedroom (and thats renting). basically you need to see where you live, cost of living there, and then go from there. It all depends on your monthly mortage rate not really on what you make a year beuase your mnthly mortgage bill will vary. hope this helps!

    #182169

    admin
    Keymaster

    The best rule of thumb to follow if you don’t want to get yourself into financial problems down the road is 1.5 times your gross annual salary equals the amount financed. In your case you would not want to finance more than $ 87,000. This will leave you enough to pay for your utilities, groceries, gasoline, auto & homeowner’s insurance, plus whatever other debt you may have.
    So many people are being over financed, and are ending up in foreclosure because someone has told them they can afford more of a house than they really can. There are many loan calculators out there, but again if you follow their formulas you are likely to end up in trouble. If half of your monthly income is going toward your house payment you will have a very bumpy ride.

    #182170

    admin
    Keymaster

    Generally speaking, a DTI (debt-to-income ratio) of 50% would get you a loan. So, that means you can afford a monthly payment of $ 2416.67 and that would have to include any other revolving/installment bills you might have. (That number would also have to include property taxes and hazard insurance.)

    For a loan amount of $ 300,000 you’d be looking at P&I of $ 1896.20/month. Based on a purchase price of $ 375,000 you’d be looking at Taxes/Insurance of $ 500/month. That puts you at $ 2396.20 or a DTI of 49.6%. Close enough.

    If you went Interest Only, you could bump up the loan amount by $ 35K and the purchase price to $ 418,750. The Interest Only payment would be $ 1814.58. Taxes & Insurance would be $ 558.33. Total, $ 2372.91 or 49.1% DTI. Again, close enough to give you the info that you need.

    This is based on CA property taxes and no special assessments. You’re mileage may vary. Some settling of contents may have occurred during shipping and handling.

    If you’re buying in CA, shoot me an e-mail: tom4loans@sbcglobal.net

    #182171

    admin
    Keymaster

    I hope you are not getting confused but how much you can afford really depends on VARIOUS things not just one or two.

    When you get pre-qualified your income, fico, debts, location, etc,etc is looked. The result of this will be how much you can really afford and what interest rate you will get.

    AND YES…it also varies from state to state. Actually it varies from city to city. The little bungalow you buy in So. California will get a mansion in No. California.

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic.

Review are closed.



About Satelec2003

We own a network of content-rich, proprietary websites focused on specific vertical categories, including mortgages, deposits, insurance, credit cards and other personal finance categories. Through this network, as well as co-branded web sites hosted by our network of 90+ online distribution partners, we provide the tools and information via a suite of products and services that can help consumers make better informed financial decisions.