Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

My salary is 103,000 a year what is the best house I can afford?

Okay I live in L.A. and houses aren't cheap here for a good neighborhood. What is something I could afford? I can put 95,000 down payment.

Update:

Thanks, I don't pay any other bills except utilties and food.

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  • 1 decade ago
    Favorite Answer

    not enough info...what kind of credit do you have...any debts?

    i go by the rule of mortgage should not exceed 25% of take home pay for a 15 year mortgage...so depending on what interest rate you could get ( lets say 5%)...i would not buy more than 300,000.00 house...20 percent down and keep the rest for an emergency fund

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  • Anonymous
    1 decade ago

    In the actual mortgage field you shouldn't have to put up more than 20 - 25 % of the value of the property of your choice, go with twenty percent down and leave the rest in the bank still earning interest for emergency fund. You should try to use the bank system to multiply your money by using (OPM) Other Peoples Money. You can turn 30,000 into 160,000 in just a couple of months. If I were to give you the plan on how to do this you would have to pay for it, so At least I told what you can do to get more money if you like , I'll leave the finding out part up to you for now...I will tell you to manipulate your money using about 3 other banks

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  • 1 decade ago

    Answer $300k The best way is to have a mortgage twice your income plus 95k down. Good for you. In the book the Millionaire Next Door Dr Thomas Stanley talks about talks about over mortgaging. This was over 10 years ago. We see the adverse affects today. Your loan officer and RE agent will say you qualify for more, the average RE agent is BROKE, would you take advice from a broke person?

    Source(s): http://answers.yahoo.com/question/index;_ylt=AjrY6... Millionaire Next Door by Dr.Thomas Stanley daveramsey.com I am a Certified Financial Planner
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  • 1 decade ago

    That depends on how much you can afford to pay monthly, not how much you make a year. If you are in debt or paying other bills that will have a huge impact on your options. Go to a mortgage calculator and see what you can come up with. Try bankrate.com

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  • Anonymous
    1 decade ago

    It should be 21/2 times your salary. Of course, a realtor will tell you 31/2 times your salary. You should always try to live within your means, not above them.

    Source(s): Retired bill collector 35 years
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  • kapn
    Lv 7
    1 decade ago

    Not enough info....what are your liabilities......what is your credit score........

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