Do You Make 0k/yr? Heres How Much House You Can Buy

If you make $50,000/yr, what’s your max purchase price? We’ll cover that and how you can figure out a good ballpark of the max purchase price when you’re shopping for a home.

I’m going to show you how you can actually calculate this for yourself with your matters also how to calculate your max monthly payment on a mortgage. and how to find your max purchase price, because ultimately you want to know, this is going to give you the answer without having to go through you might be thinking well, you know, obviously i take home a so, i know it

Can be tricky, but lenders use gross income. we have a credit card, let’s say it’s $200 per month. let’s say we have $20,000 in student loans, but we’re on an and then if you have child support or alimony, you would include things that are not included are things like your phone bill. your phone bill is not included, utilities not included in your debt-to-income ratio

And any other living expenses. so when we go through an add all of these together, we can see that our so to figure out the debt-to-income ratio, we take our total debt payment without considering you’re going to have a mortgage payment added in here. your debt-to-income, but your mortgage payment, your future mortgage payment is. is going to be to be able to see what

Our so we have to do a little bit of a backwards work around to figure looks like before we can figure out how much house we can afford here. so we have, again, our gross income, the $4,166 per month. then what we have to do is we have to pick a max debt-to-income ratio. so maybe it’s a conventional loan, an fha loan, a usda loan, a va loan. so to be safe, we’re going

To use 45% as but if you’re on a conventional loan and you have a high credit score, so it depends on your credit and what type of loan you use, so what we do is we take our monthly income and multiply that times 45%. so what this means is this is how much a so, the next step here is we take this number and we subtract so basically a lender would say, if the cap for your

Debt-to-income now, just because you can doesn’t mean that you should just because a mortgage ultimately you have to make that decision based on what you’re comfortable well, what’s included is principal and interest ,any mortgage insurance insurance, and if there’s an hoa, hoa needs to be included and that as well. now that we have that number, this is the maximum monthly

Mortgage can be one of the beginning stages of feeling some anxiety and overwhelm just know that this is all here as a ballpark for what you can afford. getting these numbers done, a lender can do these very quickly for you, so if you need help working through this, reach out to a lender and ask for qualify for, even if you’re not ready to perfectly fine to reach out and

See, hey, maybe you can establish a relationship the biggest issue is when you’re going into the home buying process and you’re find out later in the process, your budget is actually closer to $200. were spending all this time on something that you weren’t able to qualify for. calculator, and i’m going to have a link in the description here for you. so the first thing

We want to start off so i’m going to put in and the zip code of our office here, 45414. so how much money are we willing to spend in our down payment? and start moving this until we hit our target for $1,324 per month. the debts that we have $550 per month in debt payments, we can so in this instance, we can move that slider up to $265,000 and we have to kind of play

Around with these sliders a little bit here. so 5% down is going to put us closer to the $230,000 range. on a 15 year loan, we can afford a lot less because that payment is to afford closer to let me see here, readjust the down payment. up to $235,000, just depending on going from a 15 year to a 30 year. and the nice thing about this mortgage calculator is it is going

To put in not estimate your homeowners, insurance, and estimate mortgage insurance. so this should give you a really solid idea here of how much you can afford, your income is, what your debts are, and how much you can afford monthly this video over here is going to help you understand what you can

Transcribed from video
Do You Make $50k/yr? Here's How Much House You Can Buy By Win The House You Love