How Much House Can You Afford On A 100k Salary?
Ah, the coveted $100,000/yr income.
A six-figure salary is often claimed to be the pinnacle income goal for most.
So, how much how exactly can you afford when making $100,000 per year?
GET A RATE QUOTE:
✅ Purchase: https://www.credible.com/mortgage?utm_source=winthehouseyoulove&utm_medium=referral&utm_campaign=mortgage
✅ Refinance: https://www.credible.com/mortgage-refinance?utm_source=winthehouseyoulove&utm_medium=referral&utm_campaign=mortgage_refi&utm_content
*Advertisement from Credible Operations, Inc. NMLS ID# 1681276
FREEBIES:
✅ Max Purchase Price Calculator: https://winthehouseyoulove.com/max-mortgage-payment-download
✅ 7 Proven Ways To Save Thousands On Your Home: https://winthehouseyoulove.com/free
✅ Listen To The Podcast: https://plinkhq.com/i/1493715474
AFFILIATES:
✅ Online real estate school with 30% discount: https://trk.realestateexpress.com/?a=14740&c=158&p=r&s1
✅ The recording gear I use: https://www.amazon.com/shop/winthehouseyoulove
As with most things in the real estate world, it depends. But, let’s break it down with some examples…
First, we need to start with the monthly payment. The monthly payment is a huge factor in considering how much you can afford, no matter you income level.
This is because your monthly payment and your debt-to-income ratio (DTI) go hand0-in-hand with lenders making sure you have the ability to repay your mortgage.
A good rule of thumb is having a max DTI of 43%. Your max DTI might be higher or lower depending on the lender and type of loan program, but 43% is going to be a solid middle ground for us to consider.
Let’s also put a cap on the housing payment of 28% on the mortgage payment.
So, here’s how we calculate this:
Step 1: Find gross income. Everything is going to be based off of gross income. That is income before taxes. So, in this scenario that is $8,333.
Step 2: Find your max DTI. Our max DTI is $3,583. That means our monthly mortgage payment + monthly minimum debt payments cannot exceed this amount.
Step 3: Figure out monthly debt payments. Find the total off all your monthly minimum debt payments (e.g. auto loans, credit cards, student loans, installment loans, lines of credit, etc.). Let’s say you have a $400/mo auto loan and a $250/mo credit card for a total of $650/mo.
Step 4: Subtract your monthly minimum debt payments from your max DTI. ($3,583 - $650 = $2,933.) This is the max housing payment you can have!
Now that we have our max housing payment, what’s included in that?
A housing payment is your Principal + Interest + Homeowner’s/Flood Insurance + Taxes + Homeowner’s Association Dues.
Now that we know our max housing payment, we need to figure out what kind of down payment we want to put on the house.
Usually, a solid number is 10%. You might qualify to put down less, or you might choose to put down more, but 10% is a solid middle ground. This is where you’ll have to do a bit of guessing to get the math close.
Since you don’t know the max purchase price yet, take an estimate.
The calculator below is a great way to play around with these numbers to figure out how much house you can afford on a $100,000 salary.
https://smartasset.com/mortgage/how-much-house-can-i-afford#IFnmHvSxWD
All in all, figuring out how much you can afford on a specific income is first going to be about your monthly payment.
This is a great way to also see the max housing payment you’re willing to allow in your budget.
The hardest part to figure out is the home purchase price that correlates to that max monthly payment. And this is because so many factors will change (i.e. your down payment, taxes, insurance, homeowner’s association fees, etc).
So, play around with the numbers to figure out your max purchase price with a set income of $100,000, or the income figure that you make.
Hey, my name is Kyle and I'm a Mortgage Advisor serving Tennessee, Florida, and Ohio. My goal is to help you get a crystal-clear home loan that helps you win the house you love. If you're ready to create your home-buying plan, you can reach me through any of the ways below:
➡️ Do you want to:
✅ Get pre-qualified?
✅ Schedule a call?
✅ Text me a question?
✅ Email me?
✅ Get a Realtor/LO referral?
➡️ Go to https://www.winthehouseyoulove.com/
--- Legal ---
Kyle Seagraves
NMLS# 1701021
Motto Mortgage Alliance
8900 N. Dixie Dr.
Dayton, OH 45414
Equal Housing Opportunity
Видео How Much House Can You Afford On A 100k Salary? канала Win The House You Love
A six-figure salary is often claimed to be the pinnacle income goal for most.
So, how much how exactly can you afford when making $100,000 per year?
GET A RATE QUOTE:
✅ Purchase: https://www.credible.com/mortgage?utm_source=winthehouseyoulove&utm_medium=referral&utm_campaign=mortgage
✅ Refinance: https://www.credible.com/mortgage-refinance?utm_source=winthehouseyoulove&utm_medium=referral&utm_campaign=mortgage_refi&utm_content
*Advertisement from Credible Operations, Inc. NMLS ID# 1681276
FREEBIES:
✅ Max Purchase Price Calculator: https://winthehouseyoulove.com/max-mortgage-payment-download
✅ 7 Proven Ways To Save Thousands On Your Home: https://winthehouseyoulove.com/free
✅ Listen To The Podcast: https://plinkhq.com/i/1493715474
AFFILIATES:
✅ Online real estate school with 30% discount: https://trk.realestateexpress.com/?a=14740&c=158&p=r&s1
✅ The recording gear I use: https://www.amazon.com/shop/winthehouseyoulove
As with most things in the real estate world, it depends. But, let’s break it down with some examples…
First, we need to start with the monthly payment. The monthly payment is a huge factor in considering how much you can afford, no matter you income level.
This is because your monthly payment and your debt-to-income ratio (DTI) go hand0-in-hand with lenders making sure you have the ability to repay your mortgage.
A good rule of thumb is having a max DTI of 43%. Your max DTI might be higher or lower depending on the lender and type of loan program, but 43% is going to be a solid middle ground for us to consider.
Let’s also put a cap on the housing payment of 28% on the mortgage payment.
So, here’s how we calculate this:
Step 1: Find gross income. Everything is going to be based off of gross income. That is income before taxes. So, in this scenario that is $8,333.
Step 2: Find your max DTI. Our max DTI is $3,583. That means our monthly mortgage payment + monthly minimum debt payments cannot exceed this amount.
Step 3: Figure out monthly debt payments. Find the total off all your monthly minimum debt payments (e.g. auto loans, credit cards, student loans, installment loans, lines of credit, etc.). Let’s say you have a $400/mo auto loan and a $250/mo credit card for a total of $650/mo.
Step 4: Subtract your monthly minimum debt payments from your max DTI. ($3,583 - $650 = $2,933.) This is the max housing payment you can have!
Now that we have our max housing payment, what’s included in that?
A housing payment is your Principal + Interest + Homeowner’s/Flood Insurance + Taxes + Homeowner’s Association Dues.
Now that we know our max housing payment, we need to figure out what kind of down payment we want to put on the house.
Usually, a solid number is 10%. You might qualify to put down less, or you might choose to put down more, but 10% is a solid middle ground. This is where you’ll have to do a bit of guessing to get the math close.
Since you don’t know the max purchase price yet, take an estimate.
The calculator below is a great way to play around with these numbers to figure out how much house you can afford on a $100,000 salary.
https://smartasset.com/mortgage/how-much-house-can-i-afford#IFnmHvSxWD
All in all, figuring out how much you can afford on a specific income is first going to be about your monthly payment.
This is a great way to also see the max housing payment you’re willing to allow in your budget.
The hardest part to figure out is the home purchase price that correlates to that max monthly payment. And this is because so many factors will change (i.e. your down payment, taxes, insurance, homeowner’s association fees, etc).
So, play around with the numbers to figure out your max purchase price with a set income of $100,000, or the income figure that you make.
Hey, my name is Kyle and I'm a Mortgage Advisor serving Tennessee, Florida, and Ohio. My goal is to help you get a crystal-clear home loan that helps you win the house you love. If you're ready to create your home-buying plan, you can reach me through any of the ways below:
➡️ Do you want to:
✅ Get pre-qualified?
✅ Schedule a call?
✅ Text me a question?
✅ Email me?
✅ Get a Realtor/LO referral?
➡️ Go to https://www.winthehouseyoulove.com/
--- Legal ---
Kyle Seagraves
NMLS# 1701021
Motto Mortgage Alliance
8900 N. Dixie Dr.
Dayton, OH 45414
Equal Housing Opportunity
Видео How Much House Can You Afford On A 100k Salary? канала Win The House You Love
Показать
Комментарии отсутствуют
Информация о видео
17 декабря 2019 г. 16:55:10
00:11:16
Другие видео канала
How Much House Can You REALLY Afford?Fully Prepare To Buy A House (Step By Step Guide)Mortgage Secrets: Pay Less Fees and InterestHow Much House Can You Afford? (Follow The 3-30-10 Rule)How Much Car Can I Afford?FHA Loans vs USDA Loans (2021) - Which Is Better For You?Rule Of Thumb: How Much House Can I Afford?Do You Make $40k/yr? Here's How Much House You Can AffordBuying New Construction: What You Need To KnowHow Much Mortgage Can I Afford? | How Much You Can Get Approved For As a First Time Home BuyerHow To Build Credit So You Can Buy A HouseHow To Quickly Save For A House While Renting2021 Conventional Loan Requirements (NEW And Complete Guide)Home Buyer Mistakes to AvoidHomes Are Becoming Unaffordable and It Isn't Your FaultHow Much Home Can I Afford | How to Calculate Your DTI Ratio | Calculate Your Debt to Income RatioHow To Choose The Best Mortgage Lender (First Time Home Buyers)How Much House Can I Afford?What Not To Do When Buying A House: 8 Things To AvoidHow to Calculate How Much House You Can Afford