Should I buy a $1 million dollar home?

Yes why not. But first you have to confirm that you have many daily based expenses as well like;

• Auto /Transportation expense
• Charitable Donations expense
• Child Care expense
• Clothing expense
• Debt Payments expense
• Entertainment expense
• Groceries / Dining Out expense
• Fitness expense
• Gifts Given (Christmas & birthday gifts, etc.) expense
• Hobbies expense
• Household Maintenance expense
• Insurance other than medical/dental expense
• Investments expense
• Medical/Dental expense
• Miscellaneous expense
• Savings
• Subscription expense
• Utilities expense
• Vacation expense

And many other expenses

And if you have enough income after all these expenses than you should buy a house worth $1M or more

So if you wish to get a mortgage of $1M

1: Your PITI should less than 28% of your gross salary.

PITI is principal: Interest: Taxes: Insurance.

Calculation:

$1,000,000*28/100=$280,000

2: Your DTI should less than 36% of your gross salary.

DTI contains:

Mortgage, credit card payments, child support and other loan payments

Calculation:

$1,000,000*36/100=$360,000

3: Down payment of 20%.

$1,000,000*20/100=$200,000

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to a survey a person can get a mortgage double or even more than double of his salary, so if you are willing to get a mortgage of 1M your salary or income must be;

$1,000,000/2= $500,000

$1,000,000/2.5= $400,000

Hope this will help you, but if you need more information visit;

http://www.beingarealtor.com

Thanks for reading, but before you go, don’t forget to give this post an up-vote if you found it useful :-)

If you were buying your first home, what information would you want to know?

I want to share my own experience about my first home.

I don’t have enough savings to get my own home.

But my husband insists me to get our own home, because landlord was not good.

So I decide to get a mortgage, but before I get mortgage I was afraid of this.

Even I don’t know what the procedure is and what are the terms and conditions and what question I have to know etc.

All I know is my salary was $75,000 and my husband salary was $100,000.

I visited a lender, he guide me about credit score, PITI, DTI and some about down payment according to my income.

He ask me few questions and do calculations

1: Is your PITI less than 28%?

PITI is principal: Interest: Taxes: Insurance.

Calculation:

$175,000*28/100=$49,000

2: Is your DTI less than 36%?

DTI contains:

Mortgage, credit card payments, child support and other loan payments

Calculation:

$175,000*36/100=$63,000

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his salary. So according to your salary

$175,000*2= $350,000

$175,000*2.5=$437,000

You can easily afford from $350,000 to $437,000 if DTI and PITI is under control.

So we go with $437,000 and now we are happy.

Hope this will help you, but for further details feel free to visit:

http://www.beingarealtor.com

Thanks for reading, but before you go, don’t forget to give this post an up-vote if you found it useful :)

Generally speaking, is a $100,000 salary good enough for someone living in the Southern California area with a small family?

Yes it is good only if you manage your life style, because it all depends on life style, if someone can’t manage his/her life style, believe me $1M is also not enough.

So if you manage your life style you can get even your own house through mortgage.

All you need to calculate some things like;

1: Your PITI must be

$100,000*28/100=$28,000

PITI is principal: Interest: Taxes: Insurance.

2: Your DTI must be

$100,000*36/100=$36,000

DTI contains:

Mortgage, credit card payments, child support and other loan payments

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his gross salary.

So according to your salary

$100,000*2= $200,000

$175,000*2.5=$250,000

You can easily afford from $200,000 to $250,000 if DTI and PITI is under control.

But if you wish to calculate your affordability, visit;

How Much Mortgage Can I Afford On My Salary Calculator

Thanks for reading, but before you go, don’t forget to give this post an up-vote if you found it useful.

How do you calculate what mortgage is best for you?

It all depends on your salary and your expenses and your credit score.

Your salary must be good, your expenses must under control and the credit score should be more than 620.

Let’s assume your annual gross salary is $100,000, according to this;

1:Your PITI must be

$100,000*28/100=$28,000

PITI is principal: Interest: Taxes: Insurance.

2:Your DTI must be

$100,000*36/100=$36,000

DTI contains:

Mortgage, credit card payments, child support and other loan payments

3:Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his salary. So according to your salary

$100,000*2= $200,000

$175,000*2.5=$250,000

You can easily afford from $200,000 to $250,000 if DTI and PITI is under control.

Hope this will help you.

But if you want to check your affordability yourself, visit;

http://www.beingarealtor.com

What can I afford with a $120,000 base salary in San Francisco?

Well that’s good your income is $120k. But income is not the only thing through which we can decide how much mortgage we can qualify for, because we have daily based expenses as well.

After all expenses you have to make sure some things, which are following

1: Is your PITI less than 28%?

PITI is principal: Interest: Taxes: Insurance.

Calculation:

$120,000*28/100=$33,600

2: Is your DTI less than 36%?

DTI contains:

Mortgage, credit card payments, child support and other loan payments

Calculation:

$120,000*36/100=$43,200

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his salary. So according to your salary

$120,000*2= $240,000

$120,000*2.5=$300,000

You can easily afford from $240,000 to $300,000 if DTI and PITI is under control.

Wish you all the best.

Hope this will help you, but if you wish to calculate your affordability online, visit

http://www.beingarealtor.com

Thanks for reading, but before you go, don’t forget to give this post an up-vote if you found it useful 🙂

How does one qualify for a $1 million mortgage?

If you have good credit score and some other calculations like;

1: Your PITI should less than 28% of your gross salary.

PITI is principal: Interest: Taxes: Insurance.

2: Your DTI should less than 36% of your gross salary.

DTI contains:

Mortgage, credit card payments, child support and other loan payments

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to a survey a person can get a mortgage double or even more than double of his salary, so if you are willing to get a mortgage of 1M your salary or income must be;

$1,000,000/2= $500,000

$1,000,000/2.5= $400,000

Hope this will help you, but if you need more information visit;

http://www.beingarealtor.com

How much cash do I need to have to afford a $2M house?

Personal networth is just one aspect to consider when buying a house. 

You should consider cash flow from your work, your age and your material dream.

A) How much is your monthly cash flow?
Maybe be you don't have a huge networth, but if your job/busines provides a huge cash flow you can buy an expensive house even without the money in the bank.

B) How old are you? 
If you are young you can spend more in your house. Because your salary will probably raise over time.

C) Is this house your only material dream? Is it the most important? 
If yes, buy it as soon as you have the money.

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Saying that, rent is cheaper than buying a house. So, I would recommend you to check and do the math to see if it is cheaper to rent.

As a rule of thumb, never spend more than 30% of your networth in a house.

So for a $2M house, you need around $6M in total assets.