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I'm really, really curious how you got your numbers. I just 'did the math' in Redfin's mortgage calculator on a $990,000 home. The total monthly cost came out
by swendoog 9y ago
I'm really, really curious how you got your numbers.
I just 'did the math' in Redfin's mortgage calculator on a $990,000 home. The total monthly cost came out to $6,495 or $3,247 per person (in a couple). That's almost exactly 1/2 of the take-home (after tax) pay of someone making $120,000 a year in California.
-- Monthly expenses on a $990k house in SF --
Principal and Interest: $4,185
Property Taxes: $1,015
HOA Dues: $551
Homeowners' Insurance: $183
Mortgage Insurance: $561
1) That's far more than your $2,000 per person number
2) I'm no expert but, throwing 50% of your income at a mortgage seems foolish. So whether or not you can afford it, depends on your definition of "afford"
- dmode 9y agoI have a similar priced home. My mortgage payment is around $4200. Doesn't include property taxes (around $12k/yr) and Home insurance ($1200/year). Some numbers above are way too high - HOA is $551 is generally for condos. My HOA is $60/month and in my previous neighborhood, didn't even have HOA. If can do 80-10-10, many banks won't charge mortgage insurance. So the OP's numbers are actually quite close.
- cobookman 9y agoYou are forgetting interest deduction & property tax deduction. so 900k mortgage at 4.1% interest is ~3k of interest and 1.2k of principal for first month. Now you have 1k/month of property tax, 0 HOA (i was not talking about a condo), and 180$/month of insurance. I've been quoted 80-10-10 which have 0 PMI fees. Let's be safe and assume that you're taxed at 30% at your highest level. Its likely you're being taxed at 40% though. Now doing some math.... 3k*0.7 + 1.2k + 1k+0.7+.180k = 4180$/month. Obviously there's maintenance and other costs but that's how much its actually costing you.
- swendoog 9y agoAh, fair enough. I appreciate the breakdown.