how much do i have to make to buy a house

 (w/Taxes & Insurance) 4.The Down Payment 5.The Loan -Assuming a Loan -Owner Financing 6.Qualifying for a loan 7.Understand Closing Costs Do the groundwork 8.Get your finances in order 9.Check Your Credit Report 9a.Repair bad credit 9b.Establish Credit if you don’t have any The Process 10.Find a Lender 11.Evaluate the bank’s offer 12.Decide whether to use an agent 13.Learn about the suburb penalty 14.Start looking at houses 15.Get the Disclosure 16.Make an offer / Sign a Contract 17.Have the House Inspected 18.Problems on the Inspection? 19.Renegotiate the terms 20.Appraisal & Insurance 21.Closing! After the purchase Avoding scams More about Mortgages How much loan can you get? 15- vs.
To do so, HSH looked at the National Association of Realtors’ fourth-quarter data for median home prices and HSH.com’s fourth-quarter average interest rate for 30-year, fixed-rate mortgages to determine how much money homebuyers would need to earn in order to afford only the principal and interest payment on a median-priced home in their market.
SAN FRANCISCO :You’d have to earn at least $115,510 to buy an average home.
When you have a number in hand—either from an online calculator or from your actual bank—the next thing you will want to know is what kind of house you can buy for that amount? This is a great question for your realtor to answer, and one of many reasons to work with a realtor while you are shopping for a home.
When you are ready to buy a house, the very first question you are likely to ask is: “how much home can I afford?” The answer to this question depends on a variety of factors, and you can use a home affordability calculator to get a ballpark figure and get a feel for what range of houses you should be looking at.
You can plug the relevant numbers into an online “how much house can I afford” calculator, and the calculator should give you an approximate answer for the amount of loan you should be able to take out.
It’s true that you can look up some of the realty listings online for yourself, but a realtor has the inside track on all the available properties, probably including some inside knowledge about how long various properties have been on the market, how willing the sellers might be to negotiate, and when a house is overpriced for the market.
On the same principle, if you can afford a fifteen year mortgage rather than a thirty year mortgage, your monthly payments will be higher, but your overall cost will be drastically lower because you won’t be paying nearly so much interest.
In the case of a thirty-year mortgage (depending, of course, on the interest rate) the loan’s interest can add up to three or four times the listed price of the house.
For the first ten years of a thirty year mortgage, you could be paying almost solely on the interest and hardly making a dent in the principle on your loan.
If the fifteen year mortgage puts you uncomfortably close to your maximum—meaning you won’t have any room in your budget for emergencies or extras—you could always lock into a thirty year mortgage while making a commitment to yourself to make payments the size of the fifteen-year plan unless there’s a financial emergency.
When you are wondering “how much can I afford to spend on a house,” the bottom line is what size of home loan you can qualify to borrow.
First, it’s important for you, as a home buyer, to note that you don’t have to pay a realtor any fees up front, because the realtors’ fees come from the sale of the house.
You will have an easier time making your payments, or (better yet!) you will be able to pay extra on the principle and save yourself money by paying off the loan early.
How much salary do you need to buy an average house in the Twin Cities and the other top 25 markets in the nation? HSH.com wanted to find out, so they put together a list that looks at the salary you'd have to earn to afford the principal and interest payment on a median priced home in the top 25 markets nationwide.
Also known as PMI (Private Mortgage Insurance).HOA duesTypically, owners of condos or townhomes are required to pay homeowners association dues (known as HOA fees), to cover common amenities or services within the property such as garbage collection, landscaping, snow removal, pool maintenance, and hazard insurance.Loan termThis is the length of time you choose to pay off your loan (e.g., 30 years, 20 years, 15 years, etc.)Full reportClick on the Full Report link to see a printable report that includes mortgage payment breakdowns, total payments, and a full mortgage payment amortization calculation (table and chart).
Simply put, the amount of income you need to purchase a house will vary by your payment comfort level, including any other monthly debt obligations you might have.
So, if your target mortgage payment is $2,000 per month and you have consumer debts of $300 per month, you will need $6,388 gross monthly income to offset your housing expenses and consumer obligations.
When it comes to finances, you might find a disparity between how much house you want and how much house you can purchase given your gross monthly income and other factors.
And when it comes to finances, you might find a disparity between how much house you want and how much house you can purchase given your gross monthly income and other factors.
So at the end of the day how much income you need to purchase a home is predicated on your monthly income, consumer debt obligations and down payment.
So if you have a $300 car payment, you’ll need at least $600 per month or more in income to offset that debt.
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and accompanying expenses? Simply fill in the boxes below, and we’ll tell you.
Also, remember that you’ll have additional homeownership costs that you may need to factor into your monthly budget, including insurance, association fees, and maintenance expenses.
This assumes that your total costs for your loan payments (principal and interest), taxes, and insurance should not be higher than 45% of your monthly income.
Other Annual Homeownership Expenses Other annual homeownership expenses may include annual taxes, homeowner’s insurance, homeowner’s association or condo fees, and maintenance.
Based on your income, expenses, and the loan you selected, the amount above represents the most you can comfortably afford to pay for a home*.
We may change our loan rate structure and the assumptions on which our rates are based from time to time without notice.
Based on your income, expenses, and the loan you selected, the amount above represents the most you can comfortably afford to pay for a home.
Call our helpful mortgage bankers at 1-888-866-1212 to start the conversation about how to get pre-qualified for a loan so that you can start looking for your new home.
Loan Product For Adjustable Rate products, the rate is fixed for the number of years indicated for the product selected (3, 5, 7 or 10).
The APR includes interest as well as the upfront fees and points you pay for a loan, as well as mortgage insurance (if any).
* The information above is based on the interest rate during the fixed rate period of the ARM you selected.
This assumes that your total costs for your loan payments (principal and interest), taxes, and insurance should not be higher than 45%.
The rates and estimated APRs disclosed may change before loan approval or may not be available at the time we make a loan commitment to you as an applicant, or at closing, based on market conditions.
After the fixed rate period, your payment may change based on the change in the index used to calculate your interest rate.
Annual Interest Rate The simple interest rate represents the annual cost of borrowing funds.
Unfortunately for homebuyers in the Dallas metro, a mortgage rate decline of only 0.12 percent (one of the smallest declines on our list) was nowhere near enough to offset the home price boost of 9.4 percent, resulting in a required salary figure that’s about $2,400 higher than the previous quarter.
The Steel City was second on our list last quarter, and even though the metro exhibited strong quarterly price growth in the second quarter, that didn’t stop Pittsburgh from becoming the most affordable area on our list.
But the hefty decline in mortgage rates wasn’t enough to counterbalance the home-price increase in the San Antonio metro during the second quarter, resulting in a required salary that was nearly $2,000 higher than it was just a quarter ago.
But falling mortgage rates weren’t enough to balance out the home-price increases in the second quarter, causing the required salary figures to increase in all but two metro areas.
Since we’ve said it here each and every time, we’ll say it again, “Here is where things start to get expensive.” For all the metro areas in which the required salary increased in the second quarter (all but two), Seattle had the smallest salary increase at $823.83 (just under Los Angeles at $836).
With home prices up over 21 percent in the second quarter, things haven’t gotten cheaper, just more affordable than some of the other metro areas on our list.
While the NAR’s home price figures never made it that high, it was still more than enough to propel the required salary in the San Francisco metro area over $50,000 higher than its closest competition–San Diego.
Just like Phoenix, Orlando saw minimal price gains during the second quarter, allowing the required salary to actually decline modestly.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible.
When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate.
Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.
Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
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If you stay in the house for a long time — say three to five years or more — it’s usually a better deal to take the points.
Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house.
From working mothers raising their kids in RVs to stay-at-home moms who spend their days organizing events for the Oil Wives club, meet the moms of North Dakota’s oil boom.
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If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.
You should reduce the maximum target if you have other savings needs (such as retirement and college) or additional expenses (such as child care, private school tuition, health care, or alimony payments).
Once you enter your monthly debt (including credit cards, student loan and car payments), we come up with a maximum monthly home payment you could handle while staying under that threshold.
If you’re planning to remain in a place for a longer period of time, buying a house is usually the way to go (however, this equation changes with home values in your area, employment trends and several other factors).
Also, don’t forget moving fees and labor, and any fixes that you might have to make to the house upon moving in, plus monthly maintenance fees if you’re moving into a condo or planned community.
Keep in mind, in addition to the mortgage costs, you’ll have to pay the closing costs and legal fees, which are usually 2% to 3% of the house price.
While real estate agents use comparable houses, or “comps” as way to price a house, consider what it might cost to buy and build a home on piece of land in that area.
Renting makes sense if you plan to live somewhere for a relatively short period of time, as the costs associated with buying a home — such as escrow fees, taxes and closing costs — take some time to amortize.
When you apply for a mortgage, the lender will use all the relevant data-your income, your existing debts, the purchase price of the house, your down payment, the interest rate on the loan, and the cost of property taxes and insurance-and quickly calculate whether you qualify for the amount you need to buy the house.
You can obtain a free copy of your credit report from or for a small fee, you can request your credit profile from a credit reporting agency (look in the Yellow Pages or see our Internet resources section at the end of this chapter.). NFCC recommends that you obtain what’s known as a "tri-merge" credit score, which is a combination of all three credit reporting bureaus.
Lenders and financial advisors recommend that you spend no more than 25-28 percent of your income on housing and not more than 33-36 percent on total debt (housing, credit cards, and other debts).
The FICO score, developed by the Fair Isaac Corporation, is the most common credit score used in mortgage lending.
Your Maximum Total Housing Payment (Rule of 32): The next rule stipulates that your total housing payments (including the mortgage, homeowner’s insurance and private mortgage insurance (PMI), association fees and property taxes) should not exceed 32 percent of your gross monthly income.
Your Maximum Mortgage Payment (Rule of 28): The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out).
Your Maximum Monthly Debt Payments (Rule of 40): Finally, your total debt payments including your housing payment but also auto loan or student loan payments and minimum credit card payments should not exceed 40 percent of your gross monthly income.
This rule means that if you have a big car payment or a lot of credit card debt, you won’t be able to afford as much of a mortgage payments.
Now that you have an idea of how much of a monthly mortgage payment you can afford, you’ll probably want to know how much house you can actually buy.
Note: If you put less than 20 percent down, your mortgage lender will required you to pay private mortgage insurance (PMI), which will increase your non-mortgage housing expense and decrease how much house you can afford.
In the above example, if the couple with $80k income wanted the highest mortgage payment they could get, they could have up to $533 in other debt (car payments or credit cards).
Remember as you are diligently saving a portion of your income to make that home purchase happen: A lower down payment and lower total cash to close means a higher monthly mortgage payment.
So if you have a $300 car payment, you’ll need at least $600 per month or more in income to offset that debt.
For those looking to purchase a home, there are many factors that go into getting the mortgage for that loan.  In fact, lenders are likely to look at various things to determine what level of risk you are.  The higher the risk you are, the less likely you are to get a low interest rate or even to get a loan at all.  On the flip side, lenders want to loan you money and therefore put in place a variety of qualifications to help you to qualify for the loan.  Here are some things that they will look at.
The amount of income that you have is a key element in determining what amount of home you can afford, who will give you a loan and just how much it will cost you to purchase that home.  But, how much money do you need to make to buy that dream house that you want?  Perhaps you want to build a home.  This is key information to know so that you can know where you stand in terms of finding the right mortgage for your loan.  The good news is that with a bit of information and the tool of a mortgage calculator, you can find the answers to your questions that you need.
Remember, too that you can use a mortgage calculator like this to actually help you to determine how much of a home you qualify for taking what you are currently making.  Change the loan terms and the borrowed amounts to match your current situation.  You are likely to see just what amount of home works for you.
I grown up poor than poor and lived in a crowded rented row house with a single mom that was a linen factory worker and worked at night at Walmart…no car…public transportation.. With four daughters.. Guess what we all worked hard and now have our own single houses…and professionals plus we paid our own loans for college..I have friends that still live on the same block I grown up at making excuses..and its plain and simple…you didn’t have the drive to do better so your repeating the cycle.

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