If i want t buy a house for around 200k how much money should i have saved for down payment,closing costs,etc?

I have 0 debt, good credit and make about 60k a yr.This will be my first house

3 thoughts on “If i want t buy a house for around 200k how much money should i have saved for down payment,closing costs,etc?

  1. Sorry, but the answer is ‘it depends’.

    Read this:
    http://michaelbluejay.com/house/basics.html

  2. at least 20 percent of the house cost so you won’t have to have PMI insurance. it will save you alot of money

  3. Rush is a band says:

    Well, the general rule of thumb is that your house should cost between 2x and 3x your annual salary. This would be somewhere between $ 120k and $ 180k. That would indicate that a $ 200k house is a little out of range for you.

    That said, ideally you would put down 20% on a house to avoid PMI (private mortgage insurance that protects the lender). This means you would need ~$ 40k to put down. Figure another 5% for closing costs (which really depends on local real estate taxes, etc.) for another $ 10k. Ideally, you’d have $ 50k set aside.

    Now let’s be realistic. That probably isn’t the situation that you are in. A better guide is no more than 28% of your gross income should go for your housing payment. 28% of $ 5000 per month is $ 1250. That $ 1250 needs to cover your principal, interest, taxes and insurance (PITI) per month. Unless you live in a really low tax area or really can put down 20% you are going to feel stretched in that house! Don’t forget that utilities will be much higher in a house than an equivalent apartment!!

    Good luck!

Leave a Reply

Your email address will not be published. Required fields are marked *