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if my husband and I bring in about 4000 a month, would 1500 dollars be expensive for a mortgageand insurance?

 
krazyash023

Asked by krazyash023 at 10:19 PM on Feb. 24, 2009 in Money & Work

Level 2 (10 Credits)
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Answers (10)
  • That amount equals 38% of your bring home (the $4K is bring home?) This is only affordable tho, IF your automobile, debt, food, clothing, savings, school or daycare, gifts, daily running monies, insurance, don't take up more than 62%.

    Say for instance your debt level was more than 5% and your automobiles are more than 18 to 20% then you won't have enough money to get thru month to month, paying your obligations on time. That $1500 should be including your utilities, insurance and also prop. taxes. That way your budget doesn't get out of wack.

    Take your time, learn to save for "your dreams." Dreams usually come down the road when you are in a diff. season of life and you've had time to save and invest wisely to get to the point to live your dreams. :) Don't hurry too fast, you'll be miserable in the end.
    lifeasinoit

    Answer by lifeasinoit at 10:58 PM on Feb. 24, 2009

  • i would think so.. they say no more then 33%
    miss_nevin

    Answer by miss_nevin at 10:20 PM on Feb. 24, 2009

  • well hon you would have to figure in all your other expenses and see if it is resonible for you
    jodi205

    Answer by jodi205 at 10:21 PM on Feb. 24, 2009

  • It really depends. If that is your gross income then it's kind of high. But if you have no other debts it could work.
    SylviaNCali

    Answer by SylviaNCali at 10:26 PM on Feb. 24, 2009

  • well he thinks thats a big one in general but i don't i found a house i love love love love love. and it was "sold" but it fell through and they are still taking offers on it- its seriously the house of my dreams...i want it!!
    krazyash023

    Answer by krazyash023 at 10:28 PM on Feb. 24, 2009

  • aw honey if you think you two can handle go for it good luck
    jodi205

    Answer by jodi205 at 10:32 PM on Feb. 24, 2009

  • Sit down, write up ALL your monthly bills, how much you need for groceries/gas/personal items/entertainment per month. Estimate monthly electricity bill/water bill/trash pickup and anything else that would come with the house, then if you still come up with $2000 per month extra before deducting for the mortgage and insurance, then I would say you would be okay. I wouldn't cut it down to the penny because you never know when something is going to break and you will have to repair it. Trust me, I've been there...on paper, we could afford $1500 a month...in real life, it wasn't possible and we almost went into foreclosure before we found someone to rent out the house to and we moved on the military base because we just could not afford it. So if its the house you really want, and you can afford it after making your monthly budget, then by all means its a buyers market in most areas right now, take advantage!
    AprilDJC

    Answer by AprilDJC at 10:54 PM on Feb. 24, 2009

  • I've always heard do not go over 25% of your income. I would imagine that should be net income. Don't forget you have to save for taxes if it's not included in your mtg and insurance payments. Keep in mind getting mtgs that were too much for the family is why so many are losing their homes now.
    admckenzie

    Answer by admckenzie at 10:56 PM on Feb. 24, 2009

  • Is it a newer house that won't need major repairs in the near future? Do you have a decent savings account-just in case? Did you ask what the average heat/electric bill is in a typical month? Do you have a lot of bills?

    You could probably do it, but I don't know if it would be wise! For me it would be out of my price range. My husband makes about 123k a year and our mortgage and insurance is about 1600/month and I think it's a ridiculous amount. JMO.

    It's exciting getting a new house and it's hard not to get the "house of your dreams" Trust me I've been there, but isn't this just a "starter home" Why not get something a little less expensive so you have some more breathing room and then save up for the "house of your dreams" It will still be there along with many others:)

    Good luck with whatever you decide.
    Anonymous

    Answer by Anonymous at 11:06 PM on Feb. 24, 2009

  • I think that it is too much. Don't forget that you also have property taxes. The cost of maintenance (because things WILL go wrong) and all that. The very most you should pay is 1/3 of your income, but 1/4 is more ideal.
    slw123

    Answer by slw123 at 7:25 AM on Feb. 25, 2009

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