Can I afford this house?

[disneysteve]

Originally Posted by ScrimpAndSave

he has $140,000 in student loans (darn law school). He insists on taking care of the student loans himself.

Have you discussed how the household finances will be handled? Will you be keeping your finances separate? I know many people do that though I honestly could never live that way. We put all the money into the same pot and pay all bills and savings from there. We don't have "my" money and "her" money. It is all "our" money. So when we got married and I had $102,000 in student loans, it became a joint debt as everything we do and have is joint.

[ScrimpAndSave]

Yes, we have talked about that.

He feels like I should not have to pay for any of it. This is another reason why I am trying to base this whole buying a house thing on my income alone...so he can focus on paying off his loans.

We are figuring that he can pay a good amount on his loans, max out 401k and roth ira and the rest can go into the savings account.

[ScrimpAndSave]

Okay and just a few more questions...when I figure out how much I can afford in a mortgage, do I multiply my monthly gross or net income by .36?

At $70,000 my gross monthly is about: $5,833

At $70,000 my net monthly is about: $4,083

(I assumed 30% for taxes and other stuff taken out of my pay to get my net income)

So, do I multiply .36 by $5,833 or $4,083.

Also, should this total that I get after I multiply by .36 include the mortgage, principal, interest and insurance as well?

Thanks so much...I have really been wondering about this one...

[ScrimpAndSave]

For a $220,000 loan...5.5% interest rate....30 year fixed...it looks like the mortgage, interest and insurance would be around $1,600 a month. I wonder if that will be doable.

Then if we are able to save for the $80,000 downpayment, we will be able to get the $300,000 house.

Oh I hope so!

[Snave]

Where in the heck do you teach? I ask that b/c my wife was teacher and never saw a salary like that. She stays at home now, but I am thinking we need to move to where you are and try the two-earner thing again. By the way, you sound like you are taking all the necessary steps to get yourself prepared, so congrats and good luck!

[ScrimpAndSave]

Thank you so much. We just got an amazing contract...I have been there three years and we are finally getting paid what we deserve.

I am in the Lehigh Valley Pa.