How much should you spend on your mortgage payment | How much should I spend on my first house

How much should you spend on your mortgage payment | How much should I spend on my first house

Hi this is shiny de hill the real real tour getting you over the hill to home ownership today i want to talk about how much you should spend or you should budget for your mortgage payment there are multiple rules of thumb out there and i’m going to tell you four of them i’m also going to tell you how much the average mortgage payment is per hundred thousand and

I’m giving you two ways that people that i’m finding that people are saving on their mortgage payments to creative way if you haven’t already please like and subscribe to my channel for new videos like this every week and if you have a question please put it in the comments so let’s get right into it so the number one these are the rules of thumb and this is very

Different from what the bank will approve you for so if you haven’t seen my video on how to calculate your dti your debt to income ratio to see exactly what the bank is looking at when they’re trying to qualify you for the loan watch that today i’m going to talk about what’s good financially a good amount for you to spend for your monthly mortgage payment so the

First rule of thumb is the one i think is most popular this is the one that i use it is 25% of your take-home pay so you wouldn’t want to go over 25% of your take-home pay so if you’re making a $4,000 and you take home not your gross income but you take $4,000 home you wouldn’t want to spend more than $1,000 on your mortgage payment and remember when the bank or

The mortgage company is approving you they look at everything on gross pay not net pay but we know in actuality what we’re actually taking home when we actually have to spend that’s why i think 25% of your take-home pay is a good rule of thumb that gives you enough room so you have money for your bills to pay off any debt that you may still have anything that’s

Going on with your family you have time to save for retirement big house pour something that people use is because too much of their income is going toward housing so 25% is a very conservative number as long as you don’t spend over that you should be fine to reach the rest of your financial goals so 25% of your take-home pay another rule of thumb that people like

To use is four times your annual salary so four times your annual salary so if you are making twenty five thousand dollars a year you would spend no more than a hundred thousand dollars on a house okay so four times your annual annual salary and you are making $50,000 a year you would spend no more than two hundred thousand dollars on your house number three is

Whatever the bank qualifies you for you want to back that up about 10% so if the bank was to qualify you for two hundred thousand ten percent of that is twenty thousand so you wouldn’t spend more than one hundred eighty thousand um as far as borrowing no more than 180 thousand when i was teaching my husband’s a teacher we were teaching we were pre-qualified for

275 and i knew that we shouldn’t go over doing our budget i was saying we really shouldn’t go over 225 because of the time we had two children daycare and so you know parents you know daycare it’s like a mortgage payment within itself so they were pretty young i think we were spending at some at some point maybe $1,300 in daycare expenses so 1300 to 1400 they went

Down and they got older but when they were both there only a year apart so when they were both really young daycare was a mortgage payment so i knew i didn’t want us to go up to the 275 we were more comfortable at the 225 225,000 as far as a monthly mortgage payment because so just because the the mortgage company pre-qualified you for an amount does not mean you

Need to spend that amount you always can back that up you qualify for that is your max but anything lower than that you also qualify for the last one and this is from dave ramsey i know have a lot of dave ramsey fans he’s also 25% but on a 15-year loan so 25% of your take-home pay on a 15-year loan so it allows you to cut your mortgage time in half if you do a

15-year loan versus a 30-year loan so if you’re considering a 15-year loan just have the mortgage company during your pre-qualification quote you active a 15 year loan and quotes you at a 30 year loan 15 year loan interest rates are lower than 30-year loans so that’s why i was really not double it’ll go your interest rate will go down your payment will be higher

But you’ll be paid off that helps me paid off and half the time so that’s why a lot of people look at 15-year loan as a way to go but if that increase in payment will stop you from doing retirement savings paying off debt then you probably want to do the 30-year loan so just check your options all the time so let’s talk about how you calculate what your mortgage

Payment is probably going to be if you’ve watched any of my videos you know i always talk about bank rates mortgage calculator so if you use the bank rate mortgage calculator you can put in your interest rate you can put in how much the house costs your down payment amount and then it will give you what your anticipated mortgage payment will be an estimate of it

The only thing that they don’t include is pmi so if you’re going to be paying pmi private mortgage insurance because you didn’t put enough down depending on your loan type it doesn’t include that your taxes it estimates your taxes but your taxes will vary based on where you live and then it doesn’t put in hoa payment so if you’re in a subdivision that requires an

Hoa that’s not gonna be there either but it’s going to give you a general idea of what your mortgage payment is going to be you can get a very accurate estimate from a lender the lender can give you an estimate based on where you are how much you’re on your your budget is if you know you want to spend $150,000 and live in dallas texas then they can give you a very

Accurate estimate as to what’s your mortgage payment will be but if you’re just trying to figure it out on your own for right now use one of the bank rate mortgage calculators it’ll be in description so using the bank rate mortgage calculator a hundred thousand dollar property would be about six hundred and three dollars per month a two hundred thousand dollar

Property will be about one thousand one hundred and thirteen dollars per month and a three hundred thousand dollar property will be one thousand six hundred and twenty four dollars per month and i didn’t go any higher than that but hugh go as high as you need to go to estimate you want to get you also can estimate a thirty year loan or a 15 year loan to see what

Your payments would be so those are how that’s what you should one of those rules of thumb is what you should use to calculate how much you should actually spin budget wise on your house or your not house poor where’s too much of your money is going toward your housing so two ways that i’m finding that people are i’m saving on their mortgage payment number one

An fha loan allows you to buy a multi-family property so for example if you wanted to get a duplex and normally that’s considered an investment and the downpayment might be fifteen percent or 20 percent but if you’re going to live in one side of the duplex then you can still get an owner occupancy fha loan so and that’s going to still be 3.5% you could live on

One side and you can rent out the other side so that will give you you know that person could be paying their mortgage payment or a portion of your mortgage payment because you’re getting that rental income as well so if you’re interested in that when you get pre-qualified ask if that’s an option for you to do an owner-occupied duplex or triplex you can’t go more

Than four units but again you have to live in one of the units that you’re going to buy in order to be approved for an fha loan number two is intergenerational living on two of my lap two of my closings in 2020 were intergenerational meaning the family bought the property so whether it was parents and their children grandparents and grandchildren living in the

House together all of these properties had basements they had three levels so there and the basement was finished so they had some space and people could live without me on top of each other but it allowed everybody to kind of help one another when you have younger children you know help them around the house everybody’s helping with the down payment the monthly

Payment the mortgage payment that is becoming a lot very popular right now with home buying where you have intergenerational family living together it could be that everybody’s helping one another it could be that some of your older relatives or grandparents need help they need somebody younger there to help assist them because they can they can no longer live

By themselves but they want helping with the income or with the pre-qualification for the home so that’s something else to consider i know a lot of people don’t want to live with their family but if you know if you have a situation where it makes sense then you can really save on your mortgage payment every month by having multiple people chip in on that mortgage

Payment so i just wanted to talk to you about the rules of thumb on how you can estimate what your mortgage payment is going to be please like and subscribe to my channel for new videos like this every week

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How much should you spend on your mortgage payment | How much should I spend on my first house By Shaheedah Hill