How much is the average newley wed couple making, while still being able to afford a house payment?
May 5, 2007 · Print This Article
noel1426 asked:
My fiance and I are planning on buying a house, and I would just like to know, how much do you think that a couple should make, jointly, in order to pay for a house and all the bills that come along with it.
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My fiance and I are planning on buying a house, and I would just like to know, how much do you think that a couple should make, jointly, in order to pay for a house and all the bills that come along with it.
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Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.
all depends on ur mortgage payment and ur other bills u just need to sit down and figure out what u can afford never go over ur head i only spend half of my paycheck on bills the rest is in savings so if u lose ur job another job will be suffice to pay ur bills
My fiance and I currently pay 1100 per month for the house and all the utilities, cell phone, gas, electricity, groceries, cable, car payment, and miscellaneous. We bring home just about 80k together.
A lot depends on where you live, how much you make, and your personal circumstances. The U.S. average family of four makes about $65,000. Assuming you make half that, very generally you should be able to afford a house payment (including principal, interest, taxes and insurance) of about $894 per month (33% of income) and additional debt (car pmt., credit cards, etc.) of about $190 per month (38% combined total).
The problem is that if you’re in a place anything like where I live (San Diego), even a 1-bedroom condo is going to cost you almost twice the above amount (even assuming a $50,000 down payment on a $250,000 home), and almost any kind of a car payment is going to be higher than the above calculation. However, the situation is not so dire in other parts of the country. If you live in a small town in the midwest and have combined incomes over $100,000, you’re not going to have a problem at all.
But if that’s not the case, then here are creative alternatives: a) buy a 3- or 4- plex as a tenant-in-common with other investors; b) buy a place with a co-signer (maybe a parent?) and rent out a room to a boarder to defray costs; c) move to where you can afford to live.