![]() ![]() Based on those figures, to adhere to the 28% rule, the most expensive home you could afford would be worth about $392,000. So, you would end up with a monthly loan payment of around $2,736 and an additional $764 in taxes and fees. Low Credit Low Down PaymentĪ credit score of 650 and a down payment of 5% would result in an interest rate of about 7.835%. So, to stay within the 28% rule, the most expensive home you could afford is about $448,500. You would likely be approved for an interest rate of about 7.327% with a 700-credit score and a 12% down payment, which would mean a monthly loan payment of about $2,721 and additional taxes and fees of about $779. Therefore, the most expensive home you could afford would be worth about $521,200 while still observing the 28% rule. With a credit score of 750 and a full 20% down payment, you could be approved for an interest rate of about 7.112%., which means a monthly loan payment of about $2805 and an additional $695 in taxes and fees. hash-mark How Much House Can You Afford With a $150k Salary Examples Here are a few examples of how the 28% rule can help determine how much house you can afford. While you may be comfortable with more or less depending on your financial situation, the 28% rule is a good rule of thumb when creating a budget. So, if you have a $150,000 salary, you should spend at most $42,000 per year or $3500 per month. Personal finance experts recommend spending no more than 28% of your gross monthly income on your mortgage payments. hash-mark The 28% Rule for $150,000 Salaries So, pay attention to the economy, in addition to taking stock of your own financial situation. Interest rates set by the Federal Reserve will determine how much it costs for banks to borrow money from each other, which will also affect how much it costs to lend money to you. While your lender will assign you a specific interest rate based on your financial credentials, they are also impacted by broader economic factors. The current interest rates will also impact how much home you can reasonably afford. You should also consider other expenses such as childcare, utility bills, phone bills, internet, and any additional regular payment you have when creating your financial plan. Your debt-to-income ratio will impact the interest rate given to you by a lender. If you have debts or expenses that you need to pay, you should consider them when applying for a loan. While setting your budget, you should also look at your current expenses. But you also don’t want to put all of your savings toward the down payment, so be sure that you have a decent cushion left over to prepare for emergencies. You’ll need to have enough saved to pay the down payment, which should be between $19,000 and $104,000, depending on the loan size and the lender’s requirements. Practically every lender will want to know that you have a comfortable amount of savings before they approve you for a loan, so make sure you have a substantial amount of liquid funds. So, create a budget that is realistic for your financial situation. Just because you might be able to get approved for a certain amount by the bank doesn’t mean you’ll be comfortable paying that amount every month. hash-mark Factors Affecting How Much You Can Afford with a $150K SalaryĮveryone has different financial goals and obligations, so before doing any home shopping, you should set your own budget to determine how much you can afford to pay towards a mortgage and maintain a comfortable lifestyle. ![]() Here is a closer look at some factors that will impact your mortgage payments and what you can afford based on your current finances. ![]() With a $150,000 salary, you could likely afford a home worth between $380,000 and $525,000, assuming you make a 5-20% down payment and avoid spending more than 28% of your gross income on your mortgage payment. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |