What can I afford?

[dozzao]

Here is my situation. I earn 75K a year and have a wife and a baby. We live in a one bed apartment (1200/month) in Mission Hills. We desperately need more space!

We have 120K in savings of which I want to use ~50% for a down payment. When the market does finally hit bottom. What size mortgage could we afford on 75K a year – I think ~250K at most plus a down payment would mean we might be able to afford a ~300K house/condo? Is this correct?

In the meantime I need to find a relatively nice 2-bed apartment we can stay in until the market turns.

[4plexowner]

market won’t bottom before 2010 at earliest – are you really looking that far in advance or are you just trying to justify making a purchase that you are going to make anyway?

human beings are not rational – they are rationalIZING

[4plexowner]

market won’t bottom before 2010 at earliest – are you really looking that far in advance or are you just trying to justify making a purchase that you are going to make anyway?

human beings are not rational – they are rationalIZING

[4plexowner]

market won’t bottom before 2010 at earliest – are you really looking that far in advance or are you just trying to justify making a purchase that you are going to make anyway?

human beings are not rational – they are rationalIZING

[4plexowner]

market won’t bottom before 2010 at earliest – are you really looking that far in advance or are you just trying to justify making a purchase that you are going to make anyway?

human beings are not rational – they are rationalIZING

[4plexowner]

market won’t bottom before 2010 at earliest – are you really looking that far in advance or are you just trying to justify making a purchase that you are going to make anyway?

human beings are not rational – they are rationalIZING

[Blissful Ignoramus]

I’m not sure what you mean by “~250K at most”.

If you use a mortgage calculator, a 6.5% fixed 30 yr mortgage for 180K (300K house minus 120K downpayment) with 1% property tax ends up at a montly payment of $1362. Add insurance and HOA and Mello Roos to that depending on what you buy. A 5% interest rate starts you off at $1191 principal + interest + tax.

$2000 is about 32% of your gross monthly income, which is what many consider to be a maximum amount. 25% puts you at $1562. So yeah, $300K seems reasonably affordable if you find a place with no or low extras, particularly if you have all of your ducks in a row (sounds like you do) and reasonable potential for income growth.

Good luck to you and your family.

[Blissful Ignoramus]

I’m not sure what you mean by “~250K at most”.

If you use a mortgage calculator, a 6.5% fixed 30 yr mortgage for 180K (300K house minus 120K downpayment) with 1% property tax ends up at a montly payment of $1362. Add insurance and HOA and Mello Roos to that depending on what you buy. A 5% interest rate starts you off at $1191 principal + interest + tax.

$2000 is about 32% of your gross monthly income, which is what many consider to be a maximum amount. 25% puts you at $1562. So yeah, $300K seems reasonably affordable if you find a place with no or low extras, particularly if you have all of your ducks in a row (sounds like you do) and reasonable potential for income growth.

Good luck to you and your family.

[Blissful Ignoramus]

I’m not sure what you mean by “~250K at most”.

If you use a mortgage calculator, a 6.5% fixed 30 yr mortgage for 180K (300K house minus 120K downpayment) with 1% property tax ends up at a montly payment of $1362. Add insurance and HOA and Mello Roos to that depending on what you buy. A 5% interest rate starts you off at $1191 principal + interest + tax.

$2000 is about 32% of your gross monthly income, which is what many consider to be a maximum amount. 25% puts you at $1562. So yeah, $300K seems reasonably affordable if you find a place with no or low extras, particularly if you have all of your ducks in a row (sounds like you do) and reasonable potential for income growth.

Good luck to you and your family.

[Blissful Ignoramus]

I’m not sure what you mean by “~250K at most”.

If you use a mortgage calculator, a 6.5% fixed 30 yr mortgage for 180K (300K house minus 120K downpayment) with 1% property tax ends up at a montly payment of $1362. Add insurance and HOA and Mello Roos to that depending on what you buy. A 5% interest rate starts you off at $1191 principal + interest + tax.

$2000 is about 32% of your gross monthly income, which is what many consider to be a maximum amount. 25% puts you at $1562. So yeah, $300K seems reasonably affordable if you find a place with no or low extras, particularly if you have all of your ducks in a row (sounds like you do) and reasonable potential for income growth.

Good luck to you and your family.

[Blissful Ignoramus]

I’m not sure what you mean by “~250K at most”.

If you use a mortgage calculator, a 6.5% fixed 30 yr mortgage for 180K (300K house minus 120K downpayment) with 1% property tax ends up at a montly payment of $1362. Add insurance and HOA and Mello Roos to that depending on what you buy. A 5% interest rate starts you off at $1191 principal + interest + tax.

$2000 is about 32% of your gross monthly income, which is what many consider to be a maximum amount. 25% puts you at $1562. So yeah, $300K seems reasonably affordable if you find a place with no or low extras, particularly if you have all of your ducks in a row (sounds like you do) and reasonable potential for income growth.

Good luck to you and your family.

[paramount]

Welcome to Temecula….

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Welcome to Temecula….

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Welcome to Temecula….

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Welcome to Temecula….

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