What should your monthly income be to get a mortgage for a 200k house with a 20k down payment?
- real estate guyLv 76 months ago
for a 180,000 mortgage, your income should not be less then $4,000 a month or $48,000 a year. This is gross, before any deductions/taxes. Of course, your other debt needs to be reviewed.
- 6 months ago
About 40-50K range.
- Beverly SLv 76 months ago
Not enough info.. we would need to know the minimum payments on your other debt..credit cards, car payments, installment loans etc. Would also need to know your credit score.. (Rates depend on credit score).Source(s): Mortgage lender 33 years.
- A.J.Lv 76 months ago
Although 3X salary is a guidance, assuming no significant debt such as a car loan or education loan that reduces additional borrowing, there is a more exact way to calculate.
PITIH is Principal+Interest + Property Taxes + Home Insurance + Homeowners association fees.
PITIH can be up to 33% of gross income, and total debt load including PITIH at 39% maximum
There are loan amortization web sites.
The loan also has closing costs paid by buyer. They would subtract from the down payment unless paid cash.
Some sellers contribute buyers closing costs as part of the sale price to help the sale, but then it isn't a $200,000 home but rather about $198,000. So let's say 20K down plus closing costs and a $180K loan at 30 year fixed rate at 4.1% APR as the number now non-FHA loan (FHA at 5%).
$869.76 per month Principal and Interest $10,437.12 per year
Property taxes vary by where you buy the home. Estimate 1.3% per year
$200,000 x 0.013 = 2600 or 216.67/mo
Home insurance also varies. $900 per year is normal on $200k home. $75/mo
HOA fee $25/month is low when there is a fee. or $300/year
FHA includes mortgage insurance, which is different from home insurance.
Private Mortgage Insurance may be required for less than 20% down payment
Thats 0.5% of $180K the first year or $900 = $75/month until home value increases and principal is paid down.
$869.76 + $216.67 + $75 + $25 + $75 = $1,261.43 per month
1261.43 / 0.33 = $3,822.51 minimum gross pay/month
$45,870.18 per year
The 3x annual uses higher market interest rates, higher taxes and costs than those shown.
If you point out a particular home, the numbers change.
If using FHA Federal Housing Authority guarantee loan for first time home buyers
5.051% APR now.
$971.90 + $216.67 + $75 + $25 = 1,288.57
1,288.57 / 0.33 = $3,904.76 minimum gross pay or $46,857.09 per year
Folding in closing costs, higher property taxes or insurance, other outstanding loans could raise the annual salary you must have.
It also requires an OK credit rating.
In an FHA loan, you may refinance the loan when you have over 20% equity.
If credit rating is not great, you may need the FHA loan.
It is very complex but today, no less than $3823 per month and may need to be higher.
In some places, a little lower is OK with low taxes and home insurance.
- How do you think about the answers? You can sign in to vote the answer.
- Casey YLv 76 months ago
Rule of thumb is you can only borrow 3 times you annual salary. So, $180k means you need an annual salary of $60k...or $5k per month.
- LILLLv 76 months ago
At least $5000 a month.
- Barkley HoundLv 76 months ago
About 50k a year.
- Elaine MLv 76 months ago
For a 30 year mortgage? Or a 15?