Mortgage on 100k salary reddit Some people don't even see their kids and their kids hate them for it. That’s a huge range. Anything less and I am looking at fire damaged homes, houses that need major repairs, or homes in bad areas. If we say that 1/3 of your income should be mortgage, then you would have to make a household net income of about $152k or $76k after tax each. But that doesn’t take into account amortization, down payment, or other debts. Starting salary here is right There is a difference between getting a 100k salary and a 40k one. someone on $100k would find Credit affects interest rate which affects monthly max lenders will loan you. Reason? Mortgage interest deduction. I'm also not alone. It was the upper end of what I was willing to spend. We have about $110k in HYSAs to serve as an emergency fund and down payment fund. a thirty year mortgage isn't really thirty years if you keep dropping 40k on it. I am a single buyer and make $100k/year. The main hurdle is the down payment. com Sep 30, 2022 · A $100K salary puts you in a good position to buy a home. 7M, not Some people on reddit are a bit wet behind the ears and haven't seen the level of responsibility that 100k plus can bring. If you have a $100k salary; your net is probably around $6,000 after retirement account contributions. $400-$500 on food $300-400 on gas, $100 in subscriptions. Or check it out in the app stores   $100k salary mortgage qualification Requesting Advice It's probably wise to wait until next year when you have $40k - $50k to put toward the purchase. So in this case 100k x 4 + 140k = 540k house price. 8 million You will need to adjust the withholding like 10 exemptions so you keep the deduction and pay the mortgage. A good mortgage broker should be able to advise you with this before you even put offera in, reach out to another mortgage broker would be my advice. e. Jobs are pretty stable, but wife’s job (90k base) is in a layoff prone industry so it’s always a consideration. Assuming a house is $600,000 with 7% interest and a 10% down payment, your mortgage payment on a 30-year mortgage would be $4,240/month. Because I never had to worry about paying a bill, never really paid attention to the A $70k salary would be about $4. My base income is $105,000 and I have potential to earn 40% of my base as bonus per year bringing my total earning pot Same boat here. The general rule is the 28% rule. Here are some mortgage rule of thumb concepts to help calculate how much you can afford: The 28% rule The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e. 25. 2K per year in paying down the loan. Rule of thumb is: you should aim at paying 20% in cashdown, and the remaining mortgage monthly payments should not exceed 25% of your monthly income. If you make $100k you can have a life outside paying a mortgage buying a $350k home. I'm finding a ton of opportunities that state the salary ranging from $175k to beyond $300k. Edit: the “max” they’ll give you even with a strong credit history is x5. My base salary is $134,000 and I take home $7,550 after 401k, insurance, and taxes. I'm comfortable at that price no debt of any kind. I live a really frugal lifestyle and work fully remote. That’s like 60% of take home. at 100k you can most likely do that, but it might be tight. Your debt to income is way too high, and based on new mortgage rules you will probably not get a loan even close to that. I’m single and make 100k I don’t qualify for many loans that offer assistance bc of my income which is a bit unfair bc just bc I make a certain amount doesn’t mean I have a 20% downpayment sitting around (my rent alone is a mortgage payment hence why I’m in the process of buying). I mean what % of the population earns 100k+ monthly. Someone who makes 100k a year wouldn’t automatically be qualified for 400k. There was a post last week asking for advice on justifying a purchase of a $100k car. 4M and I owe around $500k. I'm still waiting for my mlo license to be approved but I've started doing so job searching to see what's out there for newbies like me. Don't forget that while you're saving, the price of these things rises by around £50 per day. The 40k one, you may look at forbearance and a public service job that will pay off the loan after time worked. 54k salary yearly income. 5. Feb 28, 2025 · Im currently 27 looking to buy my first home in California. On a typical 30yr mortgage, borrowing 100k means you'd end up paying back around 200k after 30 years. using your extra income to pay down the mortgage does not mean you're living paycheque to paycheque. How are these realistic numbers in a down mortgage economy as the one we're currently in? I'm curious. Your first few months might be slow but hitting 3/mo shouldn’t take too long to scale up to. $295k home with 20% down = $236k mortgage @ 6. , principal, interest, taxes and insurance). Purchase price of the home would be 650k and then your mortgage amount is right at 600k. entire years net salary on the Hey there, my wife and I are looking into buying our first investment property, and looking at houses for around $120k. So you should spend no more than $28,000 or $2,333 per month on your mortgage. The most I’d finance in my moderate-high COL area on that salary would be $300k max. Lenders will qualify you for 45%-50% DTI (monthly gross), then you break that payment down to mortgage + PMI + property tax + insurance, and that plus your down payment then determines the total purchase price you can qualify for. Do you know how long it’d take to save 20% for a down payment on a $100k annual salary?? I make $121k and after taxes, insurance, retirement contributions, etc I only bring home $80,000. We purchased in 2019 and both salaries have increased significantly since purchase (raises for me and hubby swapped job roles last year and got a 35k/yr pay bump). If rates went to the bank stressed ~9%, mortgage is $4. Dude you are way ahead of me lol. In a couple years when she is out, she will be making around $50K to $70K. We fully plan and intend on being married soon. Rips the joy out of the house and the mortgage eventually becomes the thing that you pay your "could do fun life things" money towards. My only critique of this would be that while his salary is $100k, he’s only living on $85k due to the 15% 401k contributions. $100k income. Mortgage, insurance and tax after 20% down are 2500 -3k depending on the neighborhood and property tax, leaving 4K to live on. & I only have about $1000 each month to spare on food/gas etc. Lender wouldn’t consider $100k+ of RSUs and bonus annually, so do keep that in mind. So you could get a mortgage for $300k and whatever you can scrap together as a down payment. Hi everyone, I'm seeking advice from anyone who is/was a Mortgage Broker. We have no other debt. NVIDIA). A 4600 dollar mortgage on a bit under 10k (46%) (160k salary) doesn't hurt nearly as bad as an 1800 dollar rent payment on a 4k monthly income (46%) (60k salary). Assume you buy, you include the rental income so the mortgage is paid for. When rates were at sub 2% it was 5. Your mortgage payment shouldn't put you more than 36% DTI: A $2,000 mortgage puts me at 41% DTI. Side note regarding some of the other comments- $100k used to be upper middle class (or rich, in some areas) but it is now just “comfortable”, meaning you can save a little, enjoy restaurants, and maybe take a vacation or two. It's up to you to see how much time it will take you to accumulate 250k in savings. 69k yearly salary is a bit low, but still, 2. An 11% stock return on 100K is about 11K but the rent earned on a 500k apartment could be $600+/wk (just enough to cover mortgage repayments) which equates to 31. According to my good faith statement, I am looking close to a little under 1700 a month for the house including insurance, mortgage, interest, taxes, and HOA. We were at 3. Pretty much the title. I don’t think you understand the economics of buying a home. 2k per month feels pretty reasonable to budget. Most places have a per-loan cap on commission. The biggest financial expenditure is mortgage/rent, followed by childcare. Therefore (based on your 5% withdrawal rate), he’d only need to save $1. We're at 25% of our combined take home salary after retirement and healthcare (this does not include bonuses) and we're in a HCOL area. $5k rates and insurance per year. Post - tax of roughly 70,000 annual ($5830 monthly) I have 28 years left for my mortgage with a remaining balance of 500k with a variable rate of 6. It depends. Really not as bad as I thought it would be. We are planning on buying just on my salary for both of us and 2 kids. 371 votes, 497 comments. 375% on our old house. With a salary of 100k it's doable. I'll put it this way: When your parents were in their 20's, if they made smart choices, they could save to purchase a home. I’m starting my home buying process and am wondering how others have budgeted for their mortgage. Which was eight days before the previous one. Oh yeah your income isn’t good. You can’t afford a $450k house on an $80k salary. We have 80-100k for a downpayment (we’ll put 20% down and save the rest) and are comfortable with about 400k for a TOTAL house price (mortgage amount would be 300-320k) Same, I think the issue is people that don't have huge incomes (or mortgages for that matter) just don't post. Once you buy a home, you can change your W-4 to take 10 exemptions to avoid giving the federal government an interest free loan, ie tax refund. Assuming you have an above average credit score; aim for something in the $300k range. Ideally you'd have $100k to account for 20% + closing costs and other fees but you may have many legitimate reasons to move faster. I have around 350k saved up from living at home and investments. Get app Get the Reddit app Log In Log in to Reddit. Hoping to do a 40k down payment, and $80k loan. With a $100,000 salary, you have a shot at The question isn't whether I can hold down a job. I put an offer in today for 300k on a house. In Ontario and BC this is doable on your $70k income at what I call A- rates. Personal opinion is 6x DTI is terrifying. Mortgage pmt: (7%, max 30 yr term) = $4k. Their jobs were such that companies fostered long-term Most houses in central locations are $600,000+ so unless you have 200,000-300,000 saved up for a down payment you probably won’t get a bank to agree to a mortgage on 100k salary. I have witnessed it first hand and those very people on that high salary have regretted it because their children grew up resenting them. I’m in no debt. Maybe even 35% for the right house. With my 100K salary, my current take home after healthcare and retirement deductions is $5. I’m 24, just started working for 3 months, base salary $100k annually, savings at most $80k for a deposit. Usually it’s max around x5 though. Mortgage insurance and taxes come out to 1500 a month. ) If this was me, I would need to be bringing in 14k gross a month to feel comfortable with that payment. A couple making $100k with a paid-off mortgage and no kids (or no kids under a certain age) is going to be enjoying a cruisy, even lavish lifestyle. PMI protects the lender against losses that may occur when a borrower defaults on a mortgage loan. Which sounds like it’s the same as saying 4 or 5 times your salary. So by the time you've saved £50k for a deposit, the price of the flat you want is at least £50k more expensive, assuming you can save £50k in 3 years, which most can't. Let’s share our mortgage to income ratios! makes over 100k. So let's say $400k house with $30K in the bank, $100K salary. You need to start getting realistic about your income and expenses. Cars are generally not affordable for most income levels. Leaves around $100 for beer. Household if single parent or single income earner, better get a good job. It’s a bit high if a limited down payment. You shouldn't have an issue unless there are a lot of expenses, bad credit report etc. I’ll even say that I feel better off financially now that I’m not bleeding $22k in rent per year (HCOL area). I have a $7500 credit card debt and $8000 in student loans. Home prices are rising in my area and people are flocking here nonstop. It wasn't that difficult for me to save up for several years to buy a $47k car than then a $67k car several years after that. true. Our calculator bases the PMI on the home price and down payment amount. 2k per month. A couple making $100k with a recent mortgage and 2 kids under school age is going to be really struggling. For a few years, when I was earning 35-40k I genuinely thought I was doing pretty well, maybe even rich. We currently save about 2k/month into this account. if you're feeling stressed you could drop your required mortgage payments to the minimum as long as you keep the option to make extra payments when you want. You’re not getting approved for a high mortgage because your income is very low Saved over $100k and didn't rush when looking. I think you are being a bit crazy a 600k home is nothing on a 120k salary. It all depends on the circumstances. From there, you can use a mortgage calculator to determine your max purchase price based on your available downpayment funds & anticipated interest rate. $600k mortgage 3% KS, no student loan. We would like to show you a description here but the site won’t allow us. I know there’s calculators for this stuff, but the cheapest decent home in my area is roughly $350K townhouse that averages out to another $50K after HOA feeds over 30 year mortgage. My annual income is 50k, monthly is ~$3800 before and ~$2800 after taxes. i was paying about that much in rent before I purchased on a salary less than that. This 28% rule is a pretty commonly used number and gives you an upper limit on what your monthly payment should be (mortgage + taxes + insurance). It ain't worth it. g. Hello. A $300k mortgage at 4% would cost about $1700 per month. I contribute 15% to my TSP, try to max out my Roth IRA every year, then put excess money into the S&P 500 and some hype stocks (e. Reply reply The average time for a home mortgage right now I think is down to 6 years (i. I pay $400 on credit card and $130 for my student loan, $250 on insu View community ranking In the Top 5% of largest communities on Reddit. I’m also looking to buy myself and I just got my pre-approval done, bank is willing to lend $560k. 20% more than a $250k house with 5% down would be a base mortgage payment of ~1500, but there are also taxes and insurance which can add about another $400/month, and pmi which can vary based on your credit score. I’m told that a mortgage payment shouldn’t exceed 25% of your net salary, which means that I can’t… Get the Reddit app Scan this QR code to download the app now. Annually it’s about a third of your income which is typical. So you basically have $4,000 left for mortgage, property taxes and insurance. I know there's calculators for this stuff, but the cheapest decent home in my area is roughly $350K townhouse that averages out to another $50K after HOA feeds over 30 year mortgage. We have around 350k in equity but an upgraded house would be over 1mil. Payroll deduction is 20% = $16k Mortgage interest deduction assuming 7% is : $31500 Single income - 100,000 gross salary About 5,000 net per month About 30% of my gross salary or nearly 50% of my net Dual income - 170,000 gross salary Minimum 9,000 net per month Around 18% of gross or about 25% of net (lots of rounding) I own the house, my partner does not. Not sure what your rates are, but I'll assume the following: Property Tax : -$245/mo Home Insurance: -$125 Utilities: -$250 It also helps keep your gross calculation low for things like child benefit limit (50k), loss of personal allowance and childcare (100k), so at those thresholds, maxing out salary sacrifice (where it is relevant to you), means you keep these other tax-beneficial perks. I bought my place for 500k (450k mortgage) on a 98k/year salary (now in the low 100s). When I was a kid, a $100k salary was almost considered rich, if not upper middle class. So like $3,200 monthly take home pay. And even more so down the road if you get a chance to refinance. 125% and that's actually GOOD compared to today's rates. Took me about 8 months to find my place but absolutely worth taking the time so you don't have any regrets. Pay half of the home cash, so you only have 250k mortgage (roughly 1200 a month). 8k/m. Bills are around 2-3k monthly, which leaves 1k to save for a rainy day fund, etc. With a $100,000 salary, you have a shot at Feb 8, 2019 · Even townhomes are going for $350K. Leaves $365 per week for everything else. As a fellow NYC-area dweller, an $800k house on a $250k salary is insane and I would not do it unless you want to be house poor. I had zero debt when I purchased my home and more than 10% for a down payment and I was only comfortable buying a $210k house because interest rates shot my We had a household income of 300k and took a million dollar mortgage at 2% interest rates. 3k per month. You’d be better off paying off your high interest auto loans and paying a little bit of PMI. My wife and I are in our second house in 5 years. I would not recommend maxing out as it will put more pressure on your monthly budget than you think. Get the Reddit app Scan this QR code to download the app now principal and interest payment on a 3. Commission will be the only way to break your salary cap as your earnings will be uncapped. That makes the assumption that I'm GETTING those jobs. Decent homes with a garage start around $320,000 in my area. Your income used for qualification will be the average of your last two years’ income. I bought my first condo for 450k with only ~150k down on a 60k salary. 3 loans a month should easily make you over 100k/yr. Ballpark after taxes, you'll be taking home maybe $5,000 per month. 51% national average 30-year fixed rate mortgage. Most people buying homes in their 30's need to look back and realize, that number is essentially the duration of time they've been alive. A salary of 100k/ year gives monthly income of a bit over $8000/ month. Bonus is anywhere from 2-8% but I'm not considering that in any calculations. You hit the nail on the head, you need a top salary to comfortably afford a big mortgage. A year ago when rates were in the low 3% range it was 2. With today’s interest rates. So at $100,000 salary a year, your combined mortgage payment and minimum payments for your auto loan and any other debt needs to be below about $2,900 per month, otherwise, you may not qualify for the mortgage. The mortgage on my house is only $850 per month and I have no other debt. So to find your approximate house price it would be yearly gross salary x 4 + downpayment = house price. Assume $80k income. doable but tight. I personally would rather not struggle to pay a big mortgage for the next 30 years, especially not knowing what the interest rates will be in the future. 9/0. 4K a month. The 100k one you can pay it off pretty fast as long as you don't pickup dependents. Ballpark your mortgage, property tax, HOA, PMI, etc will be about $4,000 per month. Car, food, entertainment, emergencies etc. I am in the southeast. know people who spend 50% on of their salary on mortgage and feel OK. is an asset, the mortgage is a liability. I'm in a very low property tax state though and do not need flood or any natural disaster insurance currently. I was approved and purchased for ~$650k with 5% down on a similar base salary ($140ish base, $250ish TC) to yours. Add the $500 or so in utilities/lawn care. We’re stuck until the house is paid off. It is a general rule based on current rates. 9% car payment at $299 per month. Similar salary bought last year around 225k with a 5 percent interest rate. I have lots of student loans and I’m doing just fine with it, including putting in some not cheap upgrades. My current weekly salary increased to $1500 because I guess I fully contributed to my EI/ CPP. If you move out from the city centre, like say Orleans or Kanata, you can probably find something in the 450,000-550,000 range and could probably get a mortgage, but Salary Progression (as an engineer): 2019 (age 23): 55k 2020: 58k 2021: 70k 2023: 96k 2024 (age 28): 101k. My annual income can range between 90-110k. a $250k house with 5% down would be a base mortgage payment of ~1500, but there are also taxes and insurance which can add about another $400/month, and pmi which can vary based on your credit score. You can just google "mortgage calculator" and run some numbers yourself, but a 30 year fixed loan at 7% give a mortgage payment of around $2000/ month. I could close a 5 million dollar loan and make 7500 dollars for example. 55% = -$1,499/mo. $120000x0. My only debt is a 1. I mean for a 300k home if you put 20% down (60k) you’re looking at about $1900 a month on a 30 year mortgage. It makes no sense to have $100k+ in the bank earning 5% when you’re paying 7% on a $47k loan. Our PITI was 24% of our take home pay when we bought last year, but I changed jobs recently so now we are at 22%. 2,000 mortgage payment, utilities at 500, taxes 400, insurance 100… so 3,000 total without even considering you should probably save for repairs too. If however you end up affording it youd be better off still not buying it. you’ll likely max out for a mortgage of $380k. At the same time our rates headed up to 6% the household income went down to 220k. 0 other debts, and a new car fully paid off. Growth potential: the goal would be to either underwrite for a broker/brokerage on a commission basis or salary+commission structure. Sep 30, 2022 · A $100K salary puts you in a good position to buy a home. people get a 30 year mortgage but sell and move before it reaches the end) Reply reply More replies 90daysofpettybs Personally, I make close to 100k salary and got approved for 325k mortgage with 5% deposit a few weeks ago. Now we're at 7. She went back to school for a career change. 5k take home monthly (without insurance or retirement deductions). Below is the cost if I do live in the condo Mortgage - $3150 It is based on gross income. It is a poor investment personally and socially. so we’ll assume $100K. We owe almost $100k less on this house we're in now, but our mortgage is $600 more a month because of interest rates. You'd be looking at a monthly payment of $4500 conservatively (very dependent on location, credit, etc. A buyer of an Get app Get the Reddit app Big mortgage is the one where more than 40% of your weekly/monthly salary goes into mortgage payment. Assume $450k loan. What mortgage can I afford on a 100k vs 120k vs 150k salary? You can afford 4x your salary. I purchased a fixer 6yrs ago for $670k (20%down to avoid mortgage insurance) and over the years have renovated it (I’m a contractor so given for less than most other people) my mortgage/tax was a little more than rent, however today it’s worth $1. Generally the more money you made, the larger percentage of your income you can put towards your mortgage. I feel like 70k was a reasonable salary a few years ago, and 100k was very nice! Now 100k feel like the bare minimum to be… OP this! Talk to your a broker and even a lender and explain your situation. About 4x gross salary is what you will be approved for a mortgage today. For a 500k mortgage, you’d need around $100K salary and a strong credit history. The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment. Mortgage broker here, but familiar with the industry as a whole on the underwriter side as well. Modest living and few other expenses. I make 100K and my wife is currently working part-time but her salary in going toward paying her tuition and fees. That leaves the remaining $500 for property taxes and insurance (probably close to $400). One of the first questions to ask when you want to buy a home is How much house can I afford?. At 160k, you're seeing ~ 10k a month. So let’s say $400K house with $30K in the bank, $100K salary. Credit unions like Meridian and Duca (Ontario) and Blueshore (BC) will calculate your ratios based on the contract rate (as opposed to the stress test rate). 9 years ago I finished college with ~125k in student loans and have paid them off while saving for a house. This give a DTI ratio of under 25% which is well below the 36% I quoted above, so it sounds like you should be able to DTI (w/ mortgage included): 41% Emergency fund (cash reserves only): $12,000 Net worth: $40,000 (cash+car+liquid retirement savings) No more than 30% of your gross monthly income should be spent on housing: A $2,000 mortgage puts me at 35%. to spend $100K annually on mortgage FWIW the banks don’t actually use x times your salary to qualify you. 5x gross. I understand there are hidden costs of the apartment as well (council tax, repairs etc) so the apartment would be negatively geared. Below are my See full list on bankrate. $120000/0. Our current household income is ~170k base salary with an additional 10-20k in bonuses. A 30yr fixed mortgage at market rates is going to cost roughly 3. Background information on myself: I am currently a Lender at a major bank and have been for past 5 years now. I base my mortgage affordability on our living expenses plus a 10% per year mortgage payment. I make $86k annually. If you are renting or worse are saving up to buy a house, $100k household income. 399 votes, 683 comments. $1,580 monthly mortgage payment including all’ the good stuff, pmi, tax, insurance. Which was six days before the last one. There’s WAY too many people on this sub who see a high salary and immediately think “oh you’re rich, you can afford it” if they see anything over $100k. A 700k mortgage on the new rate + doubled property tax would come close to tripling our current mortgage. For a multitude of reasons, I am not. For a $900k mortgage, you’d need around $180K salary a year w strong credit history. If we didn’t have student loans, I would’ve been comfortable spending up to 30% of our take home pay on our mortgage since we live in a HCOL area. Take home = $6k/m. Wife and I make less than 100k combined but our mortgage payment is less than 800 / month and that's with paying an extra $250 on the principal. . SALARY: 206k base salary with 40k bonus DOWNPAYMENT: 250k down payment; an additional 15k set aside for closing costs LIQUID ASSETS: 40k emergency fund; 75k in individual brokerages 161 votes, 520 comments. Interest rates have driven housing costs through the roof. I feel like we live in a completely different world than most of reddit. Which that's the easy part, theoretically, if you are paying roughly $1,300 a month for your mortgage. Anecdotally, I sold my house to an FHA buyer and gave 7k in credits to cover closing costs (they ended up getting like $900 back from the credit after closing costs were paid) Hey 22(M) here seeking for financial advice. Reply reply My partner makes a “guaranteed salary” of 144k however closer to the 160-180k (it depends how much he wants to work) I do not work. I'm in no debt. In your case, $100k means $500k purchase price and $400k mortgage. The disposable income ratio is almost identical, but the gap in feasibility is vast. The number 30 in 30 years also doesn't sound like much, but in reality it's 360 payments. Good to see someone on this sub with an income level similar to mine. Quick maths. It’s based on mortgage payment and your income. 06 (assuming 6% mortgage) = $2 million mortgage, but your downpayment is short by a lot so multiply by 90% to pay the PMI. In a more general sense, govt should in A whole nine days since the last time u/ItsAllOver12345 posted about how 100k isn't a decent salary anymore. I appreciate nowadays it's difficult to buy a more expensive house on an average salary. When we were at $100k with a $2,500/month payment, we'd fight about money. Spend any more than that and you become house poor. 06 = $1. $75k household income if you got lucky and bought a house more than a year ago before house prices really skyrocketed so you're grandfathered into a cheaper mortgage. There is a big difference in pay based on whether you're fulfilling a sales role by going out and bringing in the business to the bank, in which case you make more per loan, or more of a middle ground, where the bank has leads you need to convert, or doing more paperwork Private mortgage insurance (PMI) Many lenders commonly require private mortgage insurance if a borrower contributes less than a 20% down payment on a home purchase. With a 33k salary I’m guessing your take home is close to that. However in Q1/Q2 it was around $1365. You should put no more than 30% towards housing, so you can afford an all-in payment of $2,000/mo towards mortgage, insurance, and etc. personal finance can be way over the top on being conservative. It'll be frustrating because there'll probably be 1-2 places in that time that seem perfect and someone else will snap it up but it's absolutely worth being patient. Obviously in retirement, you no longer need to save for retirement, therefore he only needs to produce $85k/year income, not $100k/year. ewpmrsgev sab iedury rwrcn sdkhw dyrxp medq jrar etokwe pkzfnm eaum vlmtd cosvbe hprvwl xck