Want buy a $670K house, can I afford it?
I live in the California bay area. Almost no house is under $600K now.
About me: I make $85K - $90K per year. My wife is a student. She has full scholarship and can support herself. She is expected to make around $100K after she graduate, That probably will take 2-3 years. I cannot count on her now.
Our current Fiancial Status
Savings: I have $120K Cash and $25K in 401K (I think I can loan it out)
Expenses: Currently $1000 Rent. $60 Cell Phone. No car payment or anything.
Here is the tought questions: Can I afford a $670K house? If I cannot, I may need to consider rent few rooms out to generate revenue. How much do I need to generate? How much downpayment do I need? Is there a tutorial or guide about buying a house? I never bought a house before.
Thanks for your help.
No you can't. Not without taking a lot of risks.
Your payment on a 30-year conventional (assuming 100k down and 6.5%) would be more than $3500, with property taxes, probably more than $4500. You make $7500/month. No bank will deal with someone paying more than 50% of their income for their housing.
Once she graduates, maybe.
