I feel weird going to Reddit for this but screw it. The house is at $359k asking, I think I can get it somewhere between $340k-$350k. With taxes and insurance that puts my mortgage about $2700 per month at 20 years with $75k down including equity from my current home leaving me with an additional $30k in the bank for closing and commission costs. Commission should be low since we already have a buyer for our current home lined up. I have a seasonal job working appx 6 months out of the year away from home with an income of appx 140k Annual. Monthly income varies from $0 to $12k. My wife brings in another $20k-$30k annually. I have have about $1500 in debt payments per month. Thoughts?
Posted by captbuzz6969
8 Comments
What rate on the mortgage? Why are you considering a 20 year instead of a 30 year mortgage? What’s the difference in rate?
Im surprised any house is going under asking.
Usually the trick is to keep it under 1/3 of your monthly take home. 2700 should be closer to 1/4 for you.
What do you do for work? 6 months for 140k sounds amazing
Was with you until the last sentence about debt payments. Drop that, and then you’re good.
Yeah, so if you make 10k a month, so if you follow the 25 percent rule you can afford 2,500. 72 down on 360 once they roll in fees sounds good. We pay 2,850/mo at 3.625 percent on a 30 year, purchase price 430k, with 43k down. The property taxes account for 600, pmi is 250, actual mortgage is 2k/mo. We make around the same income as you, and it’s not too bad. If any of your 1500/mo debt payments can be eliminated by throwing 10-20k at payoff, that would help your monthly budget to afford the house.
All agency guidelines allow for monthly debt to be up to 50% of your gross income. Recommended is 43%. You are currently at less than 30%. This is definitely a no brainer, more than affordable.
What shape is the house in? Are there large maintenance project looming?
This is tight in my opinion. Do you have kids? Think about kids activities, saving for college. Do you plan on investing and saving for retirement?
Personally I would go with a 30 year loan and have a goal to payoff in 15 or 20 since you have irregular income. It is guaranteed taxes will go up, insurance will go up, there will be maintenance you didn’t budget for, etc.