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

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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.

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.

My wife and I make $200k annually. How expensive of a house could we comfortably afford, assuming no other debt and stable careers and a 20% down payment?

This is really good that you and you wife have good bounding with each other.

$200k annually is a good income. You can afford your dream house about double or more than double to your salary.

But first you have to make sure some things.

1: Is your PITI less than 28%?

PITI contains:

• Principal: The original sum of money borrowed in a loan or put into an investment.
• Interest: money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
• Taxes : Fee fixed by someone or government on assets or daily usable things or anything
• Insurance: a thing providing protection against a possible eventuality.

Keep in mind, many lenders let borrowers exceed 30%, and some even let borrowers exceed 40% it directly concern with interest rate on property.

Higher the PITI will cause higher in interest rate.

2: Is your DTI less than 36%?

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 YOUR SCENARIO…

You can mortgage a property of $400,000 or $500,000, because in US according to survey a person can easily get mortgage more than 2 and 2.5% his annual salary.