house buying abilities
- Started
- Last post
- 60 Responses
- vwsung18t
is there like a rule of thumb for figuring out how much of a house i can afford? like i heard someone say that a car payment shouldn't be more than a week's worth of pay. how much of my paycheck should go towards mortgage payments?
- UndoUndo0
in england the basic rule of thumb is 3.5-4 x yr yearly salary minus any debt you have. this gets you yr celing, so work down from there
- Nairn0
I wonder how they work it out in Scotland? Or Wales, or indeed Northern Ireland?
Maybe they don't have mortgages out there - I guess they all live in moss-covered hovels, right?
Christ, that they live at all makes my stomach turn.
- myobie0
you don't really want your house payment over 25% of your monthly income
some do it more tho...
- Nairn0
I'd rather pay a quarter of my wage on a house than I would a bloody car - that's crazy.
- jpea0
i'd say work it out to payments. if you can afford 2k a month for a payment, then figure out the total mortgage based on that with an average interest rate at 20/30 years.
- kelpie0
what if it was a Landrover, Nairn?
And no; we don't have mortgages, we win houses in hand to hand combat. wives too.
- vwsung18t0
it's the most you're supposed to pay for a car i think not like the average amount.
- vwsung18t0
that sounds like utopia, kelpie
- kelpie0
"Keltopia"
- vwsung18t0
do kung fu fighters do well there?
- UndoUndo0
i always thought the land oustide of the english borders was owned by the upper classes and used for hunting purposes
- kelpie0
who do you think they hunt?
- clearThoughts0
I suppose the repayments of your mortgage should be pretty much what you spend on rent at the moment.....
and leave a littlebit of a gap, considering that interest rates may go up .5%
- UndoUndo0
who do you think they hunt?
kelpie
(Apr 18 07, 04:58)those who say 'toilet' instead of 'lavatory'?
- vwsung18t0
i call it 'laboratory'
- Nairn0
Oh gosh, if it were a Landy, I'd rather just ask Daddy to buy me one...
*pulls up Plus-fours
*Raises shotgun, takes out a Grouse and a length of Kelpie's scalp in one shot
What-oh?!
- vwsung18t0
i think i can only afford a studio house. if that exists. should i ask for a $20k raise or will that end up bad?
- trevedda0
keep to borrowing only 3 or 3.5 times your annual salary or 4 times if you think you may be earning a bit more someday soon.
I wouldn't recommend your mortgage costing you more than 50% of your monthly after tax income. I used to calculate one third mortgage, one third bills and contingency and one third personal spending. The last two blur if you count food as personal or as a "bill". Inetrest rates are about to rise so don't over stretch. BUT do consider where you are heading in your job. If you will move jobs, earn more cash etc then you can afford to be stretched now in order to gain a little later on.
It's always hard but it will be worth the pain in the long run!
- UndoUndo0
if yr able to get a > 5% deposit together you will also find their are better deals for you (on the mortgage).
buying a place that needs some TLC can also be beneficial if you dont mind DIY and have the time. you could also consider buying somewhere like that to increase the re-sale value then use the equity you create to put down on a deposit on a place you want
- tkmeister0
there are calculators you can use.
http://finance.yahoo.com/real-es…