Can a couple making $63,000 per year afford a $150,000 house?

Question

Can a couple making $63,000 per year afford a $150,000 house?

Answer 1

Usually your house payment should be less than or equal to one-third of your take-home-pay (rule of thumb). So let's assume that you actually take home $50000 a year after taxes. That's $4167 a month and one-third of that is $1389. If you take out a 30 year mortgage at 7 percent, you can afford to borrow $208777. However, before you do that, I'd suggest saving up a down payment of 20 percent of the purchase price. In other words, plan to put down 20 percent of $150000 if that's the house you want to buy.  So the down payment is $30000 and then you borrow the other $120000.  Assuming 7 percent interest still, your house payment will be $798 a month for 30 years (or $1,078 for 15 years which would save you a bundle in interest).  Also, don't forget that you have to pay taxes and insurance.  But the bottom line is you should have no problem affording such a house.  Good luck!

Answer 2

Yes but also consider what your current expenses are - like if you are paying for expensive cars.

Answer 3

I suggest you use a mortgage calculator and work out how much you need to borrow and you can see immediately what the repayments will be.

This is one:http://www.bankrate.com/brm/mortgage-cal...

but you can google for more in your area.

Answer 4

If you have car payments and kid expenses,

it would be very tight.  You'd be better off getting

a starter home for no more than 100,000.00.

$945/mo. plus several hundred added for insurance

and property tax's will make it way over 1,100.00/mo.

Don't strap yourself without extra money for savings and

emergencies, no house is worth that kind of worry.

Answer 5

The rule of thumb is that your mortgage payment shouldn't be more than 1 weeks salary.  So it would probably be pretty tight.

Answer 6

er... yes...very easily...

Answer 7

1. At kurrent rates, morgage av 150,000$...954$/month tu banker

2. with std ges at hous tax & inshuer, & no down:

63,000$/yeer inkum kan afford 169,300$ hous

This yuze the old standard rule that PITI max=36% av pretax inkum