“Just as an example, let�s say you are borrowing $700,000.00 for 30 years with an interest rate of 6.580%. If the value of your home is $850,000.00, your property taxes $9,350.00 per year and your insurance is $1,500.00 per year, you can expect to be making a total payment of $5,657.20. This is because you need to pay $4,461.37 toward the actual loan, plus $779.17 for real estate taxes and $125.00 toward insurance.
Since your loan to value ratio is 82.35%, you will also have to pay PMI for 29 months and this will tack on an extra $291.67 a month.”
let’s round up and say that with PMI this house would cost us $6000 / month without allowing for any maintenance expenses, HOA, Mello Roos, trips to Home Depot, furnishings, etc
using traditional standards we’d need to have take home family earnings of three times our monthly housing nut – that’s $18K / month or $216K / year
in the 30% tax bracket, $300K / year gross income leaves us $210K take home
I couldn’t find statistics on how many San Diegans have a family income of $300K – anybody got the numbers? (with a reference & link)
I’m curious how many of us can actually afford this house
