How much do I need to make in order to afford a house payment?
Good question. The answer is, not that much..........as long as you don't have a lot of debt.
If you are making $30,000/year, you can probably afford a $125,000 home pretty easily. This will make up 35% of your expenses if you add in about $200 for taxes and insurance. This means that your other debts that are being reported to the credit bureaus cannot exceed 10%, or $250/month. This is assuming a 5% rate, which is high considering today's rates in the low 4's.
If you are making $40,000/year, you can probably afford a $160,000 home pretty easily. This will make up 35% of your expenses if you add in about $300 for taxes and insurance. This means that your other debts that are being reported to the credit bureaus cannot exceed 10%, or $330/month. This is also assuming a 5% rate, which is high considering today's rates in the low 4's.
If you are making $50,000/year, you can probably afford a $197,000 home pretty easily. This will make up 35% of your expenses if you add in about $400 for taxes and insurance. This means taht your other debts that are being reported to the credit bureaus cannot exceed 10%, 0r $416/month. This is also assuming a 5% rate, which is high considering today's rates in the low 4's.
Just think about your budget, and you can most likely afford a home and stop wasting your money on renting. You definately need to make room for utilities you are not used to paying, though, like sewer, trash, water, etc.
