Buying a Home

On average, and I know there are other variables involved, but how much do you think one would have to earn in income/year to be able to comfortably afford a home in the 500K range? Just a question I thought Id throw out there to anyone who might have an idea. Thanks!

Re: Buying a Home

This is impossible to answer and depends on so many factors, such as the taxes, how much other debt you have, etc. But based on personal experience I'm throwing out my estimate of at least 150K.

Re: Buying a Home

Well, to me it is more of a question of how much the mortgage is for, and what your monthly expenses are. If you are putting $100,000 down, obviously the monthly payments will be that much less. We put down a much larger chunk than we had to in order to lessen our monthly payments. If you put down $50000 and cover closing costs out of pocket a 30 year fixed at 6 1/8 percent is $2,734.25 a month for mortgage alone. Add on taxes, cable, phone, internet...Let's say $3,500 depending on taxes in the area. So, add on to that car insurance, groceries, doctors, etc., maybe $4200 a month minimum to live, no perks. So maybe a minimum of $120,000 combined?

Re: Buying a Home

I have to agree that it is hard to answer the question in the form but I would have to say minimum 120-150k as well.

Re: Buying a Home

There are lots of mortgage calculators online. You just plug in your numbers & they tell you what you should be able to afford.mortgage calculator

Re: Buying a Home

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Posted by dgtlsunshine

I have to agree that it is hard to answer the question in the form but I would have to say minimum 120-150k as well.

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Definetly the minimum. Also depends a lot on taxes. That can make a huge difference. We could afford a more expensive house if our taxes were not $9,000.