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May 17, 2008
Affordability
The open house postings have me thinking.....
What is the purchasing power of a family that makes 180k and has savings of 200k (apx)?
Also I am technically self-employed but have a steady and verifiable source of work.
Comments
to calculate the most you can comfortably borrow, assuming no other debt, multiply income x3. so 3x$180k is $540k. Add your down payment and you get $740k.
Posted by: guest at May 17, 2008 9:45 AM
That sounds about right.
We have a similar income and were able to pay 890k last year, with 360k down from sale of earlier home plus savings.
We borrowed 525k at 6.125 for a 30-year fixed mortgage.
Posted by: guest at May 17, 2008 10:41 AM
If you are self employed you will have to put more down and/or pay a higher interest rate. Not sure what technically self employed means but technically self employed probably means self employed to a bank especially in this market environment
Posted by: guest at May 17, 2008 10:49 AM
Self employed with lots of write offs? Is 180k your adjusted gross income? The money you actually make and the way the bank ses it may be different. sunny_hong@countrywide.com
Posted by: guest at May 18, 2008 2:24 AM
Self employed with lots of write offs? Is 180k your adjusted gross income? The money you actually make and the way the bank sees it may be different. sunny_hong@countrywide.com
Posted by: guest at May 18, 2008 2:24 AM
Self employed with lots of write offs? Is 180k your adjusted gross income? The money you actually make and the way the bank sees it may be different. sunny_hong@countrywide.com
Posted by: guest at May 18, 2008 2:24 AM
OP here. My gross is actually higher. My taxable last 2 years was 180k including a home office deduction. This year will be moderately higher (200-250k). Next year will probably be a bit lower.
I am self-employed but have a steady and consistent stream of work. I'm not job to job.
Posted by: slick at May 18, 2008 10:27 PM
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