Posted on: 12th Apr, 2010 10:41 pm
If I make $145,000 per year, am I crazy to take on a $400,000 20-yr mortgage w/ $80k in current debt and a $50k down payment?
$145k per year boils down to $7k per month after taxes. The mortgage payment would be $2.1k per month. Other debt maintenance is $1.2k per month. Other bills are presently about $1.4k per month.
So the math works out to: $2.6k expenses, $2.3k mortgage, balance of $2.1k to pay down debt.
I ask in part because I have never bought a house, and with my current rent I could be debt-free in 2.25 years. However, if I buy the house, I am signing up for at least 16.5 years of debt (assuming steady pay and no emergencies, etc.)
$145k per year boils down to $7k per month after taxes. The mortgage payment would be $2.1k per month. Other debt maintenance is $1.2k per month. Other bills are presently about $1.4k per month.
So the math works out to: $2.6k expenses, $2.3k mortgage, balance of $2.1k to pay down debt.
I ask in part because I have never bought a house, and with my current rent I could be debt-free in 2.25 years. However, if I buy the house, I am signing up for at least 16.5 years of debt (assuming steady pay and no emergencies, etc.)
As far as mortgage guidelines are concerned you are way over qualifed and the debt ratios are very, very low.
When you have mortgage interest and taxes, those are deductible and you do not pay as much taxes as you do now so you have a little more than you are presently figuring to pay things.
When you have mortgage interest and taxes, those are deductible and you do not pay as much taxes as you do now so you have a little more than you are presently figuring to pay things.