house payment

[reptile411]

ok short but sweet, we are buying a home, we have secured a loan for 200,000 at 6%, the payments are about 1600 per month with tax and insurance. im making 3200 per month and think this is unafordable at 1600, the broker is telling me i should have no trouble but thats her job so i supose she tells everyone that, my only debt is a 339.95 car payment, and i have 2 children "they are expencive" would taking this loan at 1600 be a mistake or is the broker right and im just worrying to much?

[Bimmer]

House payment is 50% of your income. No deal, you cannot afford this, especially with the car note on top of it.

[Madwand]

Nope

I don't see how the bank can even approve this loan. Your front and back ratios are way too high. This would be a very high risk loan for the bank and for you.

Buy a less expensive home.

Scott

[maat55]

Do yourself a favor and buy cheaper. In the short term you can save up extra cash while riding out this storm.

[reptile411]

i agree, it is a usda 100% loan, they said we were aproved because they alow a 53% debt ratio, i would love to find a cheeper house but there requierments are very strict, or so the broker tells us, we found a modular on 1.5 acers that we loved for 125,000 but then she said they wont loan on any modular. our offer for the house was 175,000, we are awaiting word if the offer was aproved and put down a $500 deposit for the offer today but so far with an asking price of 205,000 this is the cheepest house that they will loan on. its a beautifull 8yo home but the 1600 payments scare me.

[mrpaseo]

This is exactly the type of dealings that put us in the bind we are in today. Bottom line is, you can not afford the loan, you will be able to manage for about 8 months... then you will find that all your "Reserve" money is tied up or gone.

You will prove us all wrong by making your payment on time every month, but the rest of your financial world will suffer, come hell or high water you will pay your mortgage to prove that you can do it... then the lights will go out because your three months behind on payments.

You will then have to sell is desperation, you will not get what you paid for it in this market, you will either break even or take a loss. This will be financially devistating to you and your family.

Don't do it.
I have seen this way to many times,
Ray

[jeebuss31]

is 3200 before or after taxes? And I assume this is base off 1 income?

[Lori63]

I think your gut is telling you that you can't afford it-I know mine is!

[red92s]

I have about the same income, no kids, and debt, and no car payment . . . and I sure wouldnt buy something that expensive.

[Joan.of.the.Arch]

Be patient and keep looking. That is too much of your income.

[asmom]

It is unaffordable. You already know that. Do the math. My monthly HHI is more than twice yours and our mortgage payment is 400 less.

Remember you still have to pay car insurance and put gas in the car.
There's utilities, phone and cable.
Oh and you have to eat.
And don't you want to save something every month?
What about insurance: health, life, disability?

What will happen if you can't work?

[ScrimpAndSave]

It's way too much if you as me.

I have a similiar income as you...and I will be buying a house in two years when I am making $70,000 a year. At $70,000, I really don't want to be paying more than $1,600 a month on a mortgage.

[LivingAlmostLarge]

Holy cow. You can't afford it. I make about double that and our loan is a little more.

[cptacek]

You want to buy a $200,000 home on $38,500 yearly income?

Do a little experiment for about six months. If you are currently paying $1000 a month in rent, put another $600 aside and don't touch it. See how much that pinches. If you can do it comfortably and never touch the money you can buy the house. If you start to suffer in other areas of your life or you have to withdraw the money even one time, you can't buy it.

[reptile411]

thank you everyone, btw 3200 is after taxes, i bring in an aditional 1500 per month but its very shaky and ungarontyed income so i never count it as income, i pulled my offer today " it was to be submited tomorow" we did the math and without the extra income it left us with 25.27 at the end of the month witch is scary, we are still taking the loan but we will wait for a cheeper house, thanks agan