02-16-2013 01:21 PM - edited 02-16-2013 02:36 PM
Me and My wife bring in about 6K after taxes, 401K per month....We have 0 debt. Our month expenses currently is about 2K with the rent. I have about 60K in cash and about 16K immegency fund.....how much of house could I afford? and should I buy?
We are really interested in house and it 379K I am trying to negotiate to get it for a 370K. House is new and nothing to do. I have about 15K less for 20% down payment and wondering if I should role the closing costs to the mortgage. Which would make my mortgage about 379K. Is this affordable? Should I wait further.......
Loan rate I have got so far is 3.5%
Appreciate the help.
02-16-2013 01:36 PM
With rates the way they are, you can figure on about 4x your combined gross yearly income as an approval figure. Your numbers threw me off a little, but if you meant you two are bringing in 6k per month after taxes then you should be fine especially with the downpayment you have saved up.
You sound like you're in great shape considering your emergency fund. Rolling closing costs into the loan is completely up to you, but I would avoid it if you can comfortably do so. Why pay interest on it for years when you can cough it up upon move in? Chances are any furniture or appliances you finance will be on no intro APR plans anyway, so it's tough to justify rolling closing costs into a loan to be able to afford that sort of thing.
Just my 0.02 at the end there. Good luck!
02-16-2013 02:42 PM - edited 02-17-2013 07:17 AM
yeah you got it correct it was 6K. Corrected the OP. 379K houses 20% down is about 74K+11K of closing cost is about 85K. If put everything I got minus the emergency fund. It would be around 70K. That is 15K short. This where I run into an issue. I do not want to use my emergency fund for this....I feel my emergency fund is way less as I want 8 months emergncy....with the taxes and new mortgage our monthly expenses are going to move upto 3.5K which is a jump of 1.5K so I am very short on my emergency fund now itself.....
I am in majoy issue. Appreciate the help.
02-16-2013 04:08 PM
02-16-2013 04:43 PM
02-16-2013 04:45 PM
02-16-2013 07:15 PM
02-16-2013 07:47 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.