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I'm trying to think ahead and save as much as I can so I can afford something nice. Here are my assets:

180,000 in mutual funds growing around 10-12% a year (hit 16% last year)

Have zero debt and no loans/credit cards

Looking to make a down payment of $100,000

And hopefully able to make $36,000 after taxes with a business degree.

So how much home do you advise I get, theoretically speaking?

Thanks!

mhoran_psprep
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Cody M
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1 Answers1

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On $4K/mo gross about $1000/mo can go to the mortgage, and at today's rates, that's about $200K of mortgage the bank might lend you.

Income is qualified based on gross, not net, so if $48,000/yr is wrong, please scale my guesstimate down a bit. In the end, today's rates allow a mortgage of nearly 4X one's gross income. This is too high, in my opinion. I'm answering what the bank would approve you at, not what I think is wise. Wise, in my opinion is 2.5-3X one's income, tops.

JoeTaxpayer
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