13 ms·

How much did you pay for your home? $100k/yr gross household income would make it rough to own a 3/2 single family home in South Florida.

jriot 7y ago
Our home was $348k - 4 bedrooms, 2 baths in Louisiana.
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- xupybd 7y ago
  As a single with no dependants I've purchased a home at $360k and with a student loan. It's only possible having boarders that pay rent and help with the bills. The value has increased so much that I don't think it would be possible to own a home in my area on my salary any more. Now I'm looking at getting married and the cost of living is going to be okay as long as we don't have kids soon. But I'm getting older and can't put that off too long. I don't understand the housing market to know why it's like this but I'm not sure it's sustainable. People aren't going to be able to afford to have families at this rate. Also, If interest rates ever go back up I'm done.
- MuffinFlavored 7y ago
  20% down on $348k is $70k At $1,500/mo savings rate, it would take 46 months (3.83 years) to save up for your down payment (before closing costs/lending fees, but I'm not sure if those are rolled into your mortgage) This would leave you with a rough monthly payment (mortgage + interest + takes + insurance + HOA fees) of $1.8k-$2k (assuming 30 year mortgage at 4% interest rate) $100k gross is roughly $76k net (before any 401k/IRA contributions) $1.8k/mo for your mortgage * 12 months = $21.6k before any cable/water/electric/lawn/pool bills/repairs $4.5k/mo net income remaining after your house for food, cars, insurance, etc. You said $1.5k/mo savings which means $3k/mo for food, cars, insurance, travel, 401k contributions, repairs, going out, etc. I guess it is do-able. $3k/mo for 2 people does not sound terrible in the slightest.
  - lathiat 7y ago
    the rest of that budget can disappear quicker than you'd think though when you start putting in insurances, cars, fuel, groceries, etc.
  - ccvannorman 7y ago
    20% down is only for investment properties, not Single Family homes. 3.5% for FHA is the norm. 3.5% * 348k = $12,180, plus closing costs, maybe $20k in all. At 100k+ per year, you're making 6,000 per month, so you should easily be able to save enough for a 3.5% downpayment. Does nobody understand how to buy homes on this thread?! It's pretty easy if you make >100k In My Opinion! Plus, there are multiple downpayment assistance programs (google it) that will let you buy your first home with 0% down. Some of them have income limits, but I know some of them do not, as I qualify for one and I make >100k.
    - MuffinFlavored 7y ago
      Will you have PMI for the duration of your FHA loan, or do you wait to refinance by the time you have 20% equity?
      - thrower123 7y ago
        Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than that. This is what I did on my house - between the real estate market bouncing back after the financial crisis, and some renovations I did, after two years the value of my house increased almost 50%. My credit score had also gone up, and interest rates had gone down, so I also was able to get a better interest rate. [1] https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-p...
ccvannorman 7y ago
How about some facts: This is literally the first result on RedFin with no filters[0] 3158 SW 153rd Path #3158 Miami, FL 33185 $329,900 3 Bed 2.5 Bath Est monthly $2620 [0] https://www.redfin.com/FL/Miami/3158-SW-153rd-Path-33185/unit-3158/home/169138266 https://www.redfin.com/FL/Miami/3158-SW-153rd-Path-33185/uni... It's not a walk in the park, but it's not "rough" either; 2620 a month after a ~6000/mo post-tax draw leaves you with 3380/mo for food, saving, etc.

jriot 7y ago

Our home was $348k - 4 bedrooms, 2 baths in Louisiana.

deleted 7y ago
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deleted 7y ago
[deleted]
xupybd 7y ago
As a single with no dependants I've purchased a home at $360k and with a student loan. It's only possible having boarders that pay rent and help with the bills. The value has increased so much that I don't think it would be possible to own a home in my area on my salary any more. Now I'm looking at getting married and the cost of living is going to be okay as long as we don't have kids soon. But I'm getting older and can't put that off too long. I don't understand the housing market to know why it's like this but I'm not sure it's sustainable. People aren't going to be able to afford to have families at this rate. Also, If interest rates ever go back up I'm done.
MuffinFlavored 7y ago
20% down on $348k is $70k At $1,500/mo savings rate, it would take 46 months (3.83 years) to save up for your down payment (before closing costs/lending fees, but I'm not sure if those are rolled into your mortgage) This would leave you with a rough monthly payment (mortgage + interest + takes + insurance + HOA fees) of $1.8k-$2k (assuming 30 year mortgage at 4% interest rate) $100k gross is roughly $76k net (before any 401k/IRA contributions) $1.8k/mo for your mortgage * 12 months = $21.6k before any cable/water/electric/lawn/pool bills/repairs $4.5k/mo net income remaining after your house for food, cars, insurance, etc. You said $1.5k/mo savings which means $3k/mo for food, cars, insurance, travel, 401k contributions, repairs, going out, etc. I guess it is do-able. $3k/mo for 2 people does not sound terrible in the slightest.
- lathiat 7y ago
  the rest of that budget can disappear quicker than you'd think though when you start putting in insurances, cars, fuel, groceries, etc.
- ccvannorman 7y ago
  20% down is only for investment properties, not Single Family homes. 3.5% for FHA is the norm. 3.5% * 348k = $12,180, plus closing costs, maybe $20k in all. At 100k+ per year, you're making 6,000 per month, so you should easily be able to save enough for a 3.5% downpayment. Does nobody understand how to buy homes on this thread?! It's pretty easy if you make >100k In My Opinion! Plus, there are multiple downpayment assistance programs (google it) that will let you buy your first home with 0% down. Some of them have income limits, but I know some of them do not, as I qualify for one and I make >100k.
  - MuffinFlavored 7y ago
    Will you have PMI for the duration of your FHA loan, or do you wait to refinance by the time you have 20% equity?
    - thrower123 7y ago
      Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than that. This is what I did on my house - between the real estate market bouncing back after the financial crisis, and some renovations I did, after two years the value of my house increased almost 50%. My credit score had also gone up, and interest rates had gone down, so I also was able to get a better interest rate. [1] https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-p...

ccvannorman 7y ago

How about some facts: This is literally the first result on RedFin with no filters[0] 3158 SW 153rd Path #3158 Miami, FL 33185 $329,900 3 Bed 2.5 Bath Est monthly $2620 [0] https://www.redfin.com/FL/Miami/3158-SW-153rd-Path-33185/unit-3158/home/169138266 https://www.redfin.com/FL/Miami/3158-SW-153rd-Path-33185/uni... It's not a walk in the park, but it's not "rough" either; 2620 a month after a ~6000/mo post-tax draw leaves you with 3380/mo for food, saving, etc.