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# how much would a $160,000 mortgage cost a month?

if i do a 30 year fixed rate mortgage propbably a 6% rate and i make about 30,000 a year if not more and im renting the other 3 bedrooms for 400 a month, can i afford this?

THANKS EVERYONE, ITS HARD TO CHOOSE THE BEST ANSWER

### 10 Answers

- broccoli brainLv 41 decade agoFavorite Answer
AT 6% over 30 years, that principle and interest (PI) would be 959.28 per month. Remember, the monthly payment will also include 1/12 of the annual taxes and 1/12 of the annual insurance. You could probably estimate 65/m for insurance. Check out the taxes for your property to get the tax portion of the payment. BUT if the taxes are 120/ month the payment will be 959.28 + 65 + 120 = 1144.28

Can you afford that? 1144/2500 = 46% of your gross monthly income...better get a roommate!

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- 1 decade ago
A rule of thumb is you pay $6 for every thousand dollars borrowed at 6% 30 years. If you don't have enough of a down payment, you may have to pay private mortgage insurance. This will raise your costs somewhat. The lenders are not likely going to count the income you will get for renting the bedrooms. So, you will have to qualify for the loan all on your own. The lenders will only lend up to a dollar limit figured out by the ratio of your total monthly housing cost to your gross monthly income after subtracting other monthly debts. Different loan programs have different cut offs. This ratio can be as low as 28% and as high as 50%. So based on this, you would have a $960 payment before taxes and insurance. Your income is $2500. That is a ratio of 38%. You will have taxes and insurance, and you might not qualify for the 50% loan program. If you do qualify, then it looks like you can afford this. Once you add the $1200 a month in rent, you have a net income. You should probably multiply the $1200 by 75% to allow for vacancies.

Remember the interest rate on rent is 100%.

Good luck.

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- 1 decade ago
The mortgage per month would be about $960 before taxes and insurance. Find out how much taxes and insurance are on the property. Add the two together and divide by 12. Then add that number to 960, and that will be your monthly payment.

I couldn't tell you what you can afford because I don't know what other debts you have (credit cards, vehicles, boats, child support, etc.). I would suggest writing EVERYTHING down on paper - all of your expenses...including gas, food, car insurance, average money spent on going out, etc...then add in the mortgage payment and see how close you get to what you actually make. You don't want to stress yourself out living paycheck to paycheck, so be careful! At the same time, if you can afford a house, it is a better investment of your money than renting an apartment or house.

Good luck to you!

Source(s): I used www.bankrate.com to figure the mortgage payment. Just click on "calculators" at the top of the page.- Login to reply the answers

- Dale HLv 41 decade ago
It is going to be tight. If you get an FHA loan, they will let you use 75% of the $1,200 rental income to qualify, but their standard ratios are 31/43 so based on $3,400/month gross you can only "afford" to have housing expenses of $1054 and other debt of about $400. The P&I payments alone on 160K would be $959.28. Add in taxes insurance and MIP and you are probably talking about $1,300/month. That is 38%.

Then you need at least 3 months reserves after closing so that is another $4,000 you need to have available.

If you can get an automated approval with the higher ratios, it could work. Consult with a professional loan officer to be sure that you can get an approval.

Good luck.

Source(s): 7 years mortgage lending experience.- Login to reply the answers

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- Anonymous4 years ago
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Hiya - the easiest way to work it out is broadly take the interest rate (say about 6 %) over one year and divide by 12. So every £100k x 6% would be £6k per annum £160k therefore is £9,600 per annum or £1152 per month (interest only motgage). Thats just the interest though, you would have to add in a monthly sum that pays off the capital amount over 25 years or so and that would raise it by another £500 per month or so. These figures are only broad brush not 100% on the nail, but it gives you a fair idea.

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- 1 decade ago
Here's a link to a mortgage calculator:

http://the-mortgage-calculators.com/simple-mortgag...

You also have to take into account (not included in the calculator): Property taxes, homeowners insurance, utilities, and PMI (if you have a downpayment less than 20%).

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- 1 decade ago
I am sure you could as long as you can rent out the other rooms. My house cost 275,000 and I have a 30year fixed rate with 4.25% intrest and I pay 2,0032 a month for my morgage payment but that includes the taxes and home owners insurance

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- tarahLv 44 years ago
This is a challenging question, and one that intrigued me for a long time.

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