No it's not. They include taxes and insurance too because if you finance more than 80% you have to pay that to the mortgage company as well. @@isaiahbernal4943
Just because the bank will give you the loan doesn't mean you should do it, your guna be strapped with crazy debt for 30 years and if you actually do the math on those fha loans you pay about double the cost of the house by the times it's paid off, so your guna lose a ton of money on that house. You would actually be better off renting for another 5 maybe 10 years. Save up a good 20% down payment and get a 15 year loan. Other than paying cash that's the only way the house is an investment/asset. Doing it this way is simply a liability
So you pay rent for 10 years and then get a 15 years loan? So that equals to 25 years , and lose 10 years of equity? How much you think you can save wild renting,. Rent is really high as well. Your math is mathing.
Assuming u qualify for the 15 year lol most ppl barely qualify for a 30! Ur better off getting the 30 year, increasing your cash flow and making extra payments whenever the hell you feel like it to reduce your principal. Plus having a higher payment in this economy, what if you lose your job? Much easier to afford that 30 year payment over 15!
Don’t forget the local taxes and insurance premium added on. That 80 thousand isn’t your take home pay as you have to pay taxes, FICA, social security etc. also deduct whatever insurance comes out of your check. Not enough to cover that mortgage. My mortgage payment has doubled in the last 23 years due to local taxes and increases in property tax.
This advice strongly varies with property tax rates and insurance rates, but if you're lucky enough to live somewhere that it's low, you could live fairly well. Personally I'd hate paying PMI which is why I knuckled down and saved all 20% for my down payment.
Back in the 90s and prior, that paycheck could get ya a 4 bedroom 3 bathroom house with twi stories and a large yard. I don't get how conservatives can be fine with this housing crisis
@@north818hollywood also you say that like current prices for most anything actually reflect the actual average salary anymore. Our salary would need to be double it is now or more to match to the prices in the 90s
Conservatives aren't happy. It's liberals that refuse to acknowledge the problems affecting the issue. Liberals only think of the issue but not the problems causing it. And when liberals are told the way to fix it, eg smaller government, remove HOAs, enforce new area laws, democrats cry and refuse to fix some of the problems. It's why living in a conservative area isn't perfect but is much cheaper than a liberal area but with similar wages
Don’t forget to add the Bidenomics and kalminomics which leaves you with $24 each month to put in your savings so you can pay the remaining taxes at the end of the year.
I think you forgot taxes and insurance dude. That goes into the calculation of the debt to income ratio of 40%. I was a mortgage loan officer for 10 years. You really shouldn't be giving advice on RUclips if you don't know what you're talking about.
Qualifying for the loan and actually being able to afford a home are two different things. If you are spending 35 to 40% of your income every month on your mortgage and you can't afford much else you are house poor.
I'm gonna make things really easy.My brother just bought a house for 488k he put 20% down like you should. If you don't have a least 200k in savings, you're going to be house poor when you go into it that's a huge mistake. Save at least 200k before you go try to buy a house, especially a new built. My brother's 25 years old so if he can do it Anybody can you just gotta learn how to save your money.
So actual reality: banks only accept people making 100k a year with no debts, or narcos putting a 200k down payment. How do i know this? Cause i spent 2 weeks with this headache for a complete waste of time 🫠 im using a "low" income program. I guess 50k a year is section 8 vibes (Isnt the average wage like 30k?)
Plus your MIP and a 5.9% ..? what is that like a 2 point buy down 😂 The reality is if u need an FHA loan, u don't need to be purchasing in this terrible market.
Rates are so high right now. Maybe after elections something will give. You do not want a 6.5-7%. when trump was in office rates were at like 3-4%. That's big difference in payment.
Yeah..so let's just assume you have no debt and over 12K sitting in the bank...what planet does this guy live on. Not to mention most people are only making about 20 an hour not 34.
Who makes 34 an hour ???? I say this because you speak about the as tho everyone who works at Walmart/ mcdonalds makes this. My point is there are ALOT more people who do not make this much money than those that do. And of those that do already know what you're selling as so to speak.
Every union tradesman in Chicago makes $50/hr plus benefits. But anywhere you want to live is at least $500k. What can you do ? Make no money in Florida and live cheap (kind of ) or make good money on high tax high crime Chicago , LA , NYC. Those are your options
Idiotic advice, nobody works every single week of the year, average is more like 48, plus there’s taxes and other things that might come off your paycheck like your retirement savings or insurance and stuff
This income calculation is inaccurate for most people. Income for loans is verified based on your pay frequency. Which means that this calculation only holds up if you are paid weekly, which most people are not. If you are paid bi-weekly, you would calculate your hourly income by 80 hours per paycheck. If you are paid semi-monthly, typically, loan companies will calculate your income as hourly rate by 86.67 which is the average amount of hours you would receive per pay period on a semi-monthly schedule. If you are salary, they would just divide your annual salary by 12.
So you just don’t buy a house lol
Bruh acts like we pay 0 taxes lol😂
That’s what the banks take into consideration, it’s pre tax when applying
No it's not. They include taxes and insurance too because if you finance more than 80% you have to pay that to the mortgage company as well. @@isaiahbernal4943
Why do they go by how much you make before taxes this never made sense plz explain
Because people have different tax deductions - that's the only reason I can think of
Is the average pay for workers $34 an hour? Where did you get $34?
Plus property tax and insurance
Just because the bank will give you the loan doesn't mean you should do it, your guna be strapped with crazy debt for 30 years and if you actually do the math on those fha loans you pay about double the cost of the house by the times it's paid off, so your guna lose a ton of money on that house. You would actually be better off renting for another 5 maybe 10 years. Save up a good 20% down payment and get a 15 year loan. Other than paying cash that's the only way the house is an investment/asset. Doing it this way is simply a liability
So you pay rent for 10 years and then get a 15 years loan? So that equals to 25 years , and lose 10 years of equity? How much you think you can save wild renting,. Rent is really high as well. Your math is mathing.
Assuming u qualify for the 15 year lol most ppl barely qualify for a 30! Ur better off getting the 30 year, increasing your cash flow and making extra payments whenever the hell you feel like it to reduce your principal. Plus having a higher payment in this economy, what if you lose your job? Much easier to afford that 30 year payment over 15!
Don’t forget the local taxes and insurance premium added on. That 80 thousand isn’t your take home pay as you have to pay taxes, FICA, social security etc. also deduct whatever insurance comes out of your check. Not enough to cover that mortgage. My mortgage payment has doubled in the last 23 years due to local taxes and increases in property tax.
There are 8 houses available for that much in Denver..... Eight. Check zillow. All under 1k sqft and over 260k...
This advice strongly varies with property tax rates and insurance rates, but if you're lucky enough to live somewhere that it's low, you could live fairly well. Personally I'd hate paying PMI which is why I knuckled down and saved all 20% for my down payment.
You still have to pay those taxes and insurance for the year at some point though.
@@rhull3939 I never said I dont pay taxes/insurance...
Not following how you calculated the house amount after calculating the monthly payment. Could you break that one down a little more please?
You can easily get to 50% DTI with FHA. 45% no problem as long as you get a DU approval
Back in the 90s and prior, that paycheck could get ya a 4 bedroom 3 bathroom house with twi stories and a large yard. I don't get how conservatives can be fine with this housing crisis
Back in the 90s the salary was 400 bucks a week
@@north818hollywood my parents made nearly a grand a week in the late 90s
@@north818hollywood also you say that like current prices for most anything actually reflect the actual average salary anymore. Our salary would need to be double it is now or more to match to the prices in the 90s
Conservatives aren't happy. It's liberals that refuse to acknowledge the problems affecting the issue. Liberals only think of the issue but not the problems causing it. And when liberals are told the way to fix it, eg smaller government, remove HOAs, enforce new area laws, democrats cry and refuse to fix some of the problems. It's why living in a conservative area isn't perfect but is much cheaper than a liberal area but with similar wages
A house that cheap is a dump these days
It depends on where you live. If you're willing to go into the south or the Midwest, you can actually find a really nice house for that
@@tiaquannewebb8702 Yep! Get out of the coastal areas and Dem run cities and cost of living comes WAY down.
That's a nice house in my town in Northeast Ohio. My home was $50,000 and it's not a dump.
Doesn’t even exist in Vancouver
Is this for just one person or does household income count ? Me and my spouse are looking to get a home.
In CA that’s a shed in someone’s driveway with no bathroom and 1/2 parking space
Don’t forget to add the Bidenomics and kalminomics which leaves you with $24 each month to put in your savings so you can pay the remaining taxes at the end of the year.
So what if I make $30 and my partner makes $25?
How about $22 an hour? Please?
I think you forgot taxes and insurance dude. That goes into the calculation of the debt to income ratio of 40%. I was a mortgage loan officer for 10 years. You really shouldn't be giving advice on RUclips if you don't know what you're talking about.
I didn't - I calculate an average insurance rate and property tax rates using averages across all states
You can buy any house you want on any income if you SAVE first
Qualifying for the loan and actually being able to afford a home are two different things. If you are spending 35 to 40% of your income every month on your mortgage and you can't afford much else you are house poor.
I'm gonna make things really easy.My brother just bought a house for 488k he put 20% down like you should.
If you don't have a least 200k in savings, you're going to be house poor when you go into it that's a huge mistake. Save at least 200k before you go try to buy a house, especially a new built.
My brother's 25 years old so if he can do it Anybody can you just gotta learn how to save your money.
😂😂😂😂
How about $60/hr? In California tho
People need to wake up this is what you can get approved for not what you can afford there’s a big difference
I remember when making 15hr was making enough to get by on.
So actual reality: banks only accept people making 100k a year with no debts, or narcos putting a 200k down payment.
How do i know this? Cause i spent 2 weeks with this headache for a complete waste of time 🫠 im using a "low" income program. I guess 50k a year is section 8 vibes
(Isnt the average wage like 30k?)
If you go with his BS formula, you’ll be “house broke” this person can only afford about $1885 not $2300.
Plus your MIP and a 5.9% ..? what is that like a 2 point buy down 😂
The reality is if u need an FHA loan, u don't need to be purchasing in this terrible market.
Now after the divorce figure about 30% of that.
Hello I’m in Ct I make $ 8000 a month with $30,000 down how much will be the house
For conventional loan with 20% down at 30k, that's a 150k home. Which I'm sure is totally possible in Connecticut.
Rates are so high right now. Maybe after elections something will give. You do not want a 6.5-7%. when trump was in office rates were at like 3-4%. That's big difference in payment.
Meanwhile houses cost is in the millions! I give up, the American dream is dead.
So u don’t take vacation or Sick days or holidays? 😮💨 definitely off
Yeah..so let's just assume you have no debt and over 12K sitting in the bank...what planet does this guy live on. Not to mention most people are only making about 20 an hour not 34.
Who makes 34 an hour ???? I say this because you speak about the as tho everyone who works at Walmart/ mcdonalds makes this. My point is there are ALOT more people who do not make this much money than those that do. And of those that do already know what you're selling as so to speak.
That’s ridiculous making $34 dollars and barely afford to live, the American dream is fully dead.
And that's the way to go into bankruptcy 😅😅😅
Which means in Colorado you can’t afford a to buy a house🤦🏾♂️
Lets assume you have no debt
Here's how much the bank will spend on a house they will own but convince you that you own it at 34/hr.
Who the fuck makes $34@hr? Nobody in south Florida.
Every union tradesman in Chicago makes $50/hr plus benefits. But anywhere you want to live is at least $500k. What can you do ? Make no money in Florida and live cheap (kind of ) or make good money on high tax high crime Chicago , LA , NYC. Those are your options
Do one making $20.50 please.
I can do all the math and I get 1,421. Up until you say about the interest rate and come up with the number. I’ll have 20k to put down.
don't hide behind the counter... express everything for us....lol
😂😂 a shoebox
No way u can afford $285k home
You still can't afford it
Idiotic advice, nobody works every single week of the year, average is more like 48, plus there’s taxes and other things that might come off your paycheck like your retirement savings or insurance and stuff
It’s all a scam don’t buy
Its ridiculous
Laughs in Va loan
So you would live in the hood
This income calculation is inaccurate for most people. Income for loans is verified based on your pay frequency. Which means that this calculation only holds up if you are paid weekly, which most people are not. If you are paid bi-weekly, you would calculate your hourly income by 80 hours per paycheck. If you are paid semi-monthly, typically, loan companies will calculate your income as hourly rate by 86.67 which is the average amount of hours you would receive per pay period on a semi-monthly schedule. If you are salary, they would just divide your annual salary by 12.