Quote:
Originally Posted by spence
Close to it, I think I applied the 30% after tax which raised it a bit.
480,000 principal + PMI @5% (likely much higher for a first loan) @30 years = 2577/month
10k average real estate taxes + 2k average property insurance = 12k
Monthly payment = 3,670
30% threshold = x*.30 = 3670 = 12,233/month gross
146,796/yr / 2000 hrs = 73.4 an hour gross wage.
Which is likely low as I don't think a first time home buyer with that size of a loan is even going to get 5%, so the answer is likely over 80/hr.
|
I admittedly edited my entire grumpy old fart post.....So let's start over ....if the old rule of thumb is 30% of your income is what you can afford for mortgage it means if you make $100K a year that would equal a $$2500 a month mortgage which to me at least seems a little high since a third goes to taxes and a third to pay everything else and live on. 16 years ago we were approved for a home loan twice what we knew we could comfortably afford or roughly $350K....glad we didnt do it. Many ended up in foreclosure, bankruptcy or both, never to own the "dream".