My fiancee and I are about to start looking for our first house together. Currently we make roughly $80,000 combined annually.
I've been reading about how much one should spend on their first house. There appears to be some common rules (28% max mortgage, 32% total housing, and 40% with debts), but those all deal with knowing mortgages already.
Here is our financial situation:
- Annual income: $80,000
- Debts
- Auto loan: $13,500 @ 3.5%
- Auto loan: $4000 @ 0%
- Student loan: $5200 @ 3.9%
- Student loan $4800 @ 4.7%
- 6 month emergency fund (based on current expenses)
- Wedding already budgeted for
- $30,000 saved up
So I'm looking for some help or information based on the following questions:
- What is my max budget for a house the above information?
- What is a good budget for a house (allows breathing room - in case shit happens)?
- What calculation are you using so I can apply it in case anything changes?
- What debts (if any) should we pay off before purchasing a house?
I do apologize if any of these questions are naive. I am looking to learn and apply what I learn. I am open to any and all information regarding first time home owners (financial or otherwise).
Submitted January 23, 2017 at 10:47AM by atemporaryquestion http://ift.tt/2jpb5t1
