How much should I earn to live in a $750,000 home?

Everyone wish to live in a dream house. House cost $750,000 must be very beautiful.

But if you are a business man or you have won some big price than you can easily afford.

Because according to a survey a person can easily afford mortgage 2 to 2.5 times of their salary.

So according to this:

$750,000/2= $375,000

$750,000/2.5= $300,000

If your salary is $300,000 to $375,000 than you can easily afford.

Sorry to say but this salary is IMPOSSIBLE.

If you wish to calculate online to HOW MUCH MORTGAGE YOU CAN EASILY AFFORD than visit:

How Much Mortgage Can I Afford On My Salary Calculator

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.

Can I afford 800-850K Home in bay area if I earn 140K? My situation is, I have a family with 3 yrs old kid and wife doesn't work.

Why you want to make your life difficult?

According to your family size you have nice income in which you can easily bear there all expenses.

But if you thought to get a house worth 800-850k, it is not good.

Because according to survey a person can easily afford mortgage 2 to 2.5 times of his gross salary.

Some main things:

1: Before taking on such a huge debt, take some time and think or talk to your family.

2: Look at your personal situation, and think about your lifestyle, not just now, but for future.

3: That dream home may be everything you've wanted at a great price now, but is it worth overextending yourself and your family?

4: Will you be mortgaging not only your house, but your entire lives as well?

5: A lender helps you literally buy a home. But the real person who should decide if you can actually afford it is you.

For more information visit:

How Much Mortgage Can I Afford On My Salary Calculator

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I make $175k a year, how much house can I afford?

Good to know that you earn $175k per year which is good salary

I always here to help you out.

The minimum ideal salary for a year is $100,ooo to mortgage a property, and you earn more than that,

so it is easy for you to mortgage your dream house.

but first you have to make sure some things, which are following

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

PITI ( Principal, Interest, Taxes, Insurances )

A good rule of thumb is that PITI should not exceed 28% of your gross income.

However, many lenders not guide well and let borrowers exceed 30%, and some time even 40%, which is not good.

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

DTI ( your mortgage, credit card payments, child support and other loan payments )

To calculate your maximum monthly debt based on this ratio, multiply your gross income by 0.36 and divide by 12.

through this you can know your monthly debt.

For example;

if you earn $100,000 per year, your maximum monthly debt expenses should not exceed $3,000.

According to your salary which is $175k per year multiply this with 0.36 and divide by 12

$175,000*0.36=$63,000

63,000/12=$5250

your maximum monthly debt expenses should not exceed $5250.

Remember one thing you have to give 20% as down payment of the purchase price greater the down payment will minimize the interest .

NOTE:

*Some time our daily life expenses will exceed more then our thinking so i recommend you to plan like the way you can save money as well.

*There are many online calculators to calculate affordability to mortgage.

Good Luck.. !

PS: if you need any help related to Mortgage visit this;

How Much Mortgage Can I Afford On My Salary Calculator

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