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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!

  • 5
    If you want to make a down payment of $100K on a house (in the US) and thus get a mortgage of $400K (20% down) or more than $400K (less than 20% down), you may find banks to be very reluctant to make such a large loan if your take-home pay is $36K. – Dilip Sarwate Jun 14 '15 at 18:07
  • What can your income be in 3 years? 60K, 75K? You may want to hold off a bit until our income rises. It is very low for the amount you have invested, and for someone with a 4 year degree, and for someone living in the US. – Pete B. Jun 15 '15 at 16:41
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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.

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