Do you think it will be hard for a person who only makes $2000 a month to pay $817 a monthly mortgage payments?
There is a home that I have been looking at purchasing for $120,000. My lender said that monthly mortgage payments will be $817. It's a nice home with an upstairs and 3 bedrooms. I will be living in the home alone. My mom says that the home is too big for a single person like me who never plans on having children. Do you agree with her?
I am 24 and this will be my first time purchasing a home.
- SCATTY cLv 62 months ago
This is a theoretical situation ... Given you earn 2k a month, that means 24k a year. You won't get to borrow more than about 85k
- curtisports2Lv 72 months ago
Not only hard but impossible. NO mortgage lender will give you a mortgage in that amount with that income. That is 41% of your gross monthly income. The standard is 28% of gross monthly income for the total housing payment which includes monthly amounts of yearly property tax and insurance.
- JohnLv 72 months ago
I take home $1683/month and pay $900 for rent.
- JudithLv 72 months ago
Doesn't matter what we think. With an income of $24,000 a year there is no way any one would give you a mortgage on a house worth $120,000. You might get a loan for a house valued at $72,000 (3x your yearly income). Banks don't only take into account your yearly income but also consider your monthly mortgage + insurance + property taxes. Housing should not take up more than one-third of your income.
I don't happen to agree with your mother when it comes to the size of a home for a single person. I have a 2 bedroom apartment and wish I could afford a 3 bedroom. I have one as my bedroom, of course, the other as my combination computer/sewing room. I wish I had a 3rd to use as a guest room. And while you don't plan on having children, you still don't know what your future will bring.
I say if you can afford the mortgage, house insurance and property taxes then go for it. But you can't. You shouldn't be paying more than $600 a month on all 3 expenses or you will be what is known as house poor without enough of an income to meet all of your other necessities. Vacations will be a thing of the past.
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- StephenWeinsteinLv 72 months ago
Yes, I think making the payments would be hard. Also, it wouldn't leave you with enough money for other things.
- Anonymous2 months ago
- 2 months ago
Don't ask us. Ask a mortgage broker or lender for pre-approval on a loan. Not pre-qualification - the real thing. If a bank won't loan you the money it doesn't matter what anyone says here.
- n2mamaLv 72 months ago
In short, yes, I think financially that could be tight, depending on your other bills. I assume that $2000 is after tax, so you have just under $1200 for all your other bills. This could include:
-property tax (if not included in your mortgage total)
-utility bills (electric, gas, water, waste services, etc. this could be a couple hundred a month, depending)
-groceries and personal items, including household items like cleaning supplies
-car expenses. This could include a payment if you have one, insurance, tax, and maintenance costs
-other debts such as credit cards, student loan payments, etc.
-entertainment expenses, such as going out with friends, eating out at restaurants, movies, etc.
I have no opinion on the size of the house and your situation, if you want three bedrooms, have three bedrooms. Has your lender approved you for the loan? Or have you just been prequalified?
- SimplytheFACTSLv 72 months ago
yep...............................if you only make 2k a month, your max mortgage/debt is 72K. some banks may allow 84K especially if cost of living in that area is lower.
how much do you take home? does that include property tax--in some areas that may be 100/month, but others could be 500/month for a 120K property. I am guessing that includes property tax as principal/interest would be 200 less.
assuming 2K is before income taxes, estimate 1600 take home...less if you have to pay insurance (may end up with a little more take home, but to be safe you need to budget 1600, any extra should go to savings.)
add at least 50 insurance, do you need mortgage insurance?
300 gas/electric/water/sewer/heat/hot water
what about tv/phone/internet
repair budget..you need to have 10K available for repairs
300 food and household supplies
recreation.....adds up to about 2000 per month, maybe more