How Much Home You Can REALLY Afford & Not Be House POOR (By Take Home Pay)
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- เผยแพร่เมื่อ 25 ส.ค. 2024
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These interest rates are making the monthly payments too expensive. 😢
Yesssss!!!
Yes, the interest rates are bad but historically they have been higher. People were paying over 10% on houses at one point. Home prices themselves are way out of whack and I blame institutional investors and corporations gobbling up houses for cash and then raising rents or selling them for 50-100% more than they bought them for. It's throwing the housing market into a tizzy but yes, interest rates are high, but 3% is extremely low
@@ODK321 Anyone who was able to purchase during Covid, got the steal deals!
@fred7506 lies...no where in history has their been interest rates over 10%...plz drop the link of where u found this information.
@@silkshirt17witdajhericurl80it’s true. Interest rates were very high due to inflation. Houses were much cheaper then
35% for me would be about $1600 a month for my monthly payment. I just bought a house last year and my total monthly payment with taxes and insurance is $1827, and it’s tougher than I thought with the unexpected expenses. It’s still manageable, and I’m hoping that within the next two or three years my income will increase while my payment basically stays the same, but the cost of maintenance and repairs can be more than people would expect (unless of course you know how to do HVAC repairs, know how to do minor electrical work, know how to fix a blown pilot on a stove, are able to cut down a tree with a collapsed branch on your power line, etc).
Omgggg I wish I lived where the homes were these prices. I live in Delaware and for a decent starter home is anywhere between $300-350k. So many ppl from NJ & PA have moved here and drove up the rate. I wish I could spend $215k! That would be unbelievable!🥰🥰🥰
Affordability is a huge issue. The pandemic caused prices to go up 40% or more over the last 2 years. Hopefully with more people being required to return to work, there may be some relief.
Omg. I would love delaware or maryland prices. NYc is madness. Some 500k homes have no walls. Are gut reno or u gotta move out on long island😩.😩
Same with NC. Our homes used to be affordable. Now it's ridiculous. I'm near the Charlotte area.
Great video. Some folks need a 1 bedroom condo. No need to be house poor.
Yes, thanks for watching.
Shout out to all the mortgages loan officers who refuse to answer customer questions but instead want to run everyones credit. You are doing very well!!!
This is good advice but with 6-7% interest rates and housing prices still high… goodluck 🤷🏾♀️
I'm at 45% ..my 1 and only child is now graduated from college.. I also reduced some other expenses, example paid off my 2021 car, so it's manageable. I also purchased a home with a ton of remodeling, so I didn't have to do much at all, so it works.
I thoroughly enjoy your videos.
Congratulations and thank you so much! Congrats on getting your baby through college - that is huge🙂
bought an 8 year old house in 2021 for 365 K 4 bedroom 3.5 baths 1908 sq ft. Original listing price 330K, had to over pay to get it since in good neighborhood and school district. % rate 2.99%. put 55 k down . monthly payment $1980 a month. we put around $ 500 to $ 700 a month extra towards principal, trying to get house paid off in 10 years or less. the % rates now are insane glad we bought when we did
Well done and congratulations.
The prices are going down in my area. 3 bed 2 bath is being listed between 180k to 200k in great neighborhoods, but they don't last not even for 24 hrs on the market.
@@lifenuggets2221 for 200 k i am curious how much work needs done to them, if not much you are right wont last long
@@lifenuggets2221 200k? which city is that?
@@alexdes8097 rural Virginia near Williamsburg
Thank you Shaheedah I just closed on my first home. I watched all your videos and purchased your first time homebuyer guide. Wouldn’t be here with your great resources!
Thank you so much for bringing me along on your journey. Congratulations and many blessings in your new home!!
Excellent vlog and well done. You are so awesome.
Thank you for having a heart of a teacher and educating people especially first time homebuyers.
You give me hope because you care. I wish there were more people like you, who are truly making a difference in people lives.
How lucky am I to have found your TH-cam channel.
Sending you some California love....
Thank you so much!
@@ShaheedahHill
You are so welcome Shaheedah😊👍🏽
@@ShaheedahHillIf someone has a very low income($1,500-2,000 monthly), should they even consider buying a house? Would they be turned away by a lender? Thanks!
I live in Birmingham and everything I see on Zillow in a nice area is starting at 250k. That house is more than likely somewhere where I’d have to sleep with one eye opened. 🤷🏽♀️
Exactly
Hi Shaheedah! I'm viewing a home today with a realtor who just moved here from Atlanta. Fingers crossed she's as good and honest as you!😅
Best of luck!!
It saddens me to say I had to put a pause on my home ownership. I was told my monthly would be 70% of my income not 30%i. Also the HO insurance fee is doubling and tripling as well as some being dropped. I’ve decided to rent.
Also, be mindful that property taxes and home insurance can significantly increase in a short period of time resulting in a jump in your mortgage!
I am mindful of that but it is less common to have drastic property taxes and insurance increases - these pandemic years have been unique in the rapid increase of home values. In 7 years, my property taxes have went up from about 3K a year to 5K but my home value have doubled. So it amounts to about an extra $200 per month On the other hand I have seen rent doubled for many people in one year.
Loved your video. If people would take your advice, they would get ahead. My husband and I bought our first house in 1990 with a combined income of $70000 a year. Since we knew when we had children I would stay home we only bought a $70000 house at 10% interest at the time. We didn't even ask how much the bank would lend us since we didn't want to be tempted. We have had a good life, educated 5 children, and will be able to retire all because we didn't buy to much house.
So smart! Yes, too many first time buyers just spend whatever the lender will lend them instead of determining a comfortable amount ahead of time. Well done and thanks for sharing.
WTH = 10%!!#
@ashburnconnecttv7860 exactly.!
I do not believe these ppl when they say 10%...I need to see a credible source/cite tht explains and the reason for it being tht high. 😅
Mrs. Hill you just described most of Memphis people I get so tired of fake it till you make it people. It's so sad they buy all this stuff and can't afford to go out to eat breakfast, lunch, and dinner Lol ! You told the 100% truth. God Bless, Lisa
Thank you Lisa..Instagram has a lot of people messed up, they rather look like they are doing well instead of actually doing well.
Meanwhile the average home prices nationwide is about 300,000 plus...
Thank Goddess me and my wife bought our house in 2020 with 2.5% interest rate
Yes, the housing world has changed very quickly. Congrats!
ATP the entire "house buying process is very discouraging and stressful😩..Me myself a single mother and if im being honest id rather buy new construction but here's the kicker... besides the interest rates being sky high so are the prices for even just a townhouse is just a s expensive as a full house which makes you same "well i might as well look at a house if going pay this much"😂 on top of that now you gotta imcrease income times a million just to qualify for a decent amount otherwise all you can afford and or qualify for is a box in the hood....
Umm this just makes me sad 😕 I live in Brooklyn NY rentals are crazy 2200+ for a 2 bedroom if you get a deal for 1500+ you feel like you won the lottery 😂 but then you have to look at the neighborhood too...How are we suppose to afford a house when most of your money's is going to rent, food and bus/train transportation and if you go to another state your not going to get paid what you get paid in the big cities only if you transfer to the same job in that state 🤔🙄🤷🏽♀️🤦🏽♀️
I'm from Birmingham, Alabama this home is close to my old neighborhood 😊😊😊
It's call trying to keep up with the jones
Exactly
I don't think that's the truth for everyone. Some people are just wanting a home that's not run down or isn't in a run down area.
I appreciate this break down! This us my dilemma affordability with my lease coming to a close. He will work it work it out ❤
You got this!
Love her videos.. it help me to buy my first house .if you plan to buy ,you better watch her videos so you don’t screw up.
Thanks so much
The only problem is been paying over 50% for rent for years now. Nobody wants to move to Cambridge unless you’re retired.
Great video! Been watching since your video on assumable loans.
Thanks
Me too. New york is 500 600 range
This video is what I was waiting for, thank you .
Thanks for watching!
Thank you so much!
You're welcome!
Shout out to all my fellow Oklahomans! Mrs. Shaheedah found Oklahoma City. I'm about 300 miles from OKC.
Thank you!
Unfortunately its almost impossible not to spend 50% of your income on housing especially in an apartment and especially if your single!
I understand that things are a lot more expensive then they were pre-pandemic, but people either have to just pay more or adjust their lifestyle or both. All thing are possible, if it will cost 50% or more of your income you likely need a roommate, stay with family longer, increase your income. There are always multiple solutions to any financial problem.
You are right. This advise would have work pre Covid era. Currently in my state Connecticut most decent homes start from 350k to 700k non luxury houses plus high taxes $500-2000 monthly . Even making 117k. It’s just rough. There’s is still a bidding war. Ghetto places are still between 350-500k. I’m in the middle of closing a house but I will need to get a roommate to offset the expenses. Taxes alone is 1k. Thank u for constant updates and advice.
I am in the same boat as a single Mom, and I cannot get a roommate rent in Gwinnett County not less than $2k. I was being pressured to buy a home and they wanted $2,536 a month not including HOA. Thats more than 35% of my take home pay. There are no houses for $225k in GA, not even in the hood areas. We really have to pray for each other that things get better.
Well, i pay most of the bills and you just have to up your income cause rent doesn't decrease in most places.
I bought down my rate, from 6.75 to 4.01... i was the first customer to ask the bank to approve the purchase so many points. I also needed approval from the Department Veterans Affairs for Home Loans.
Thanks for sharing!
I make 4k per month, monthly payment is $1,1250, house $230k (up to 254k now), 5 bdrm 3 bath, 3200k sqft
That is excellent!!!
Now Mrs. Hill... you made good points but weakened the argument by jumping across 3 cities...Birmingham, North Atlanta and Cambridge?! The Kennesaw house stood out because its the 1990 "Hall" model built by Diversified in all the black middle class suburbs between 1988-1992. Ashley Downs, Forest Downs, Marbut Downs...etc. Mostly full of Section 8 nowadays.🤷🏽♀️ I'd like to see a fair comparison of what $3K, $5K, $10k monthly take home gets the buyers one metro at a time...can't compare apples, oranges and rotten tomatoes 🍅 😂 Luv Ya...keep us on top of it! ❤
Thanks for the feedback and for watching!
I know people in a $350k home in NJ with around $8000 monthly take home pay and still feeling like a poor person due to inflation 😢😢😢
Dave ramsy says 25% of take home pay. Not sure where you looked in Birmingham but for that price it won't be a safe neighborhood.
Thanks for watching!
Those home prices are really low. The homes in my area are around $470k to $600k at least the ones that fit our needs we take home between $7800 and $10k a month after taxes and 401ks so my only option is too keep stacking cash until we get a down payment of $150k to $200k. Sound about right?
It really depends on how long it will take you to save that amount. So say prices go up 3-5% a year and it takes you 5 years to save. Would it be better to buy now with a lower down payment. Also look at investing that money instead of doing a large down payment and see what makes the most sense for you. Thanks for watching
@@ShaheedahHill It will take 2 years to save and we are already investing. I'm okay with prices going up as long as my payment fits my budget I'm good. I do plan on paying it off early as my pay goes up every year.
Im buying my first house and will be spending 16% of my income on my house (monthly take home is 10,500) and mortgage is 3469/month but splitting with my husband. House is 525k and we’re putting down 105k
Excellent, Congratulations!
@@ShaheedahHillthat’s is great. That home will likely greatly increase in value overtime too if they decide to sell. Long Term thinking pays off! 💯💯
I just bought a home for 710 k in ca. my husband and I have no debt. Our cars are paid off and finished with daycare so we are able to afford the payment. There are a lot of people who want to have expensive cars and run up credit cards that’s why paying the mortgage can be expensive.
Thanks for watching and sharing.
This is a very realistic video. I love the examples of affordability in different states. Thank you so much for this.
You are so welcome!
I love these kinds of videos.
Can you do this for Central Florida or South Florida
Please do one for the DMV lol😂
I may need to, but my overall feeling is if you cannot afford to buy a home in a decent area where you live, you need to move or aggressively increase your income if you plan to stay.
Hello not everyone live in States with those house prices you are showing us.. I'm trying to buy a house and the houses that I see starts at $400,000 ..and I make $5,200 per month.. Unless you sending us to the hood. No pun intended!
This video is giving you an overview and I did go to some of the most affordable states. I know many states are unaffordable for many residents earning the average salary, but still be mindful of creating a budget before your pre-approval so you won't be tempted to spend an amount that is way outside of your budget. Thanks for sharing and for watching.
I really want to spend less than 35% of my take home pay but the house market is insane in NYC and around it. I can’t move either so it sucks
After watching this show on Netflix, I kinda gave up hopes on ever owning a home of my own. There are way too many expenses to have to save up for. And besides, my wife and I are in our 40's, and are not six-figure folks. We are just ordinary people working for you know who.
Don't give up, they are plenty of people that are not six figure earners that can afford a home, its all about location.
@ShaheedahHill 🙏🏾🤞🏽❤️ I reside in SC and prices are ridiculously more than 7 years ago when my wife and ibmoved down here. could we be related somehow..... 😆
These are good examples for me. I’m looking into first time buyer and 60 yo
Thanks for watching!
beautiful
Thank you! 😊
No mention of bigger downpayments to get a lower payment
@MeintheMiddle1 Thank you for watching
What about some where like CA where starter homes are $600K? Should we just wait until we make over 10K per month or does it make more sense to just pay more than 35% of your income towards a mortgage?
It is a guideline, the 35%, so you will still be able to do other things with your income instead of so much going towards housing. You want to get as far away from living paycheck to paycheck as possible.
Havent had a chance to watch the whole video. I think the 35% may have to increase. W cost of inflation and the pay not increasing it's hard to even afford rent w just 35% of take home pay. We purchased in 2020. We almost backed out bcuz we thought the housing market would crash. We're so glad we didn't and we have a 2.5$ IR.
I live in Md near DC, average home price is 400K, you can find cheaper townhomes built in the 70s/80s for $250,000 and my take home pay is about 3700.00 after taxes, insurance, and 401k, so this means I can't afford a home in my city..lol
If I were you, I will look into an older home to get my foot in the door. My home was build in 1920 (NJ). I have owned it for 6+ years now and did a whole renovation not too look ago. I purchased it for 250K and it was recently appraised for $476K. I feel like a lot of first grime home buyers are not realistic with the kind of home they can really afford. If you're waiting for your first home to be your dream home, one will be waiting for a while. Get in the game (starter home), then move upward to bigger home if need be.
Preach Shaheedah!!! The look at the gross! - Porscha
Yes, it causes a lot of buyers to overspend.
I wish i can have a one on one conversation with you.
I have a savings and an emergency fund.
I'm spending 38%, so i'm close but i have an emergency fund and money goes to HSA. I'm also contributing 10% to my 401K and no car payments.
Awesome job!
What about PMI if you only putting 5% down?
You will still have to pay PMI in most cases.
How about those who are planning to get a condo. Where as they may have assessment fee possibility. What would be the advised.
Im about to close on a home and will be paying 75% of my take home pay...laughs nerviously in California. 😂
I aiming on the lower side looking at around 20-25 % of take home pay
You are on the right path with that lower percentage. A generation ago no one ever said to spend any more than that.
That is even better🙂 Thanks for watching.
Isn't 33% high shouldn't it be more like 25% ?
What’s the current interest rate??
30 year fixed 6.87% www.mortgagenewsdaily.com/
Thank you
what if your take home is under 2000 a month?
Unless you live in a really affordable area you may need to rent until your income increases. @yolandajones9677 Thank you for watching
35%!!!!! Whoa!!!!!!! That is pure madness. That number has gone from 25% to 30% and now 35%. 28% is ideal, 30% is pushing it. 35%...Wow!!!
And, no. It is not interest rate that is making a home unaffordable it is the inflated price of the home. It kills me when people make that comment below. You can ALWAYS refinance a rate (IF you are not upside down), you can NEVER renegotiate the price of the home. If the house is unaffordable, it is the house NOT the interest rate. Don't think that way, it will keep you poor or struggling.
The 28% that most financial experts give is pre-tax.
@ShaheedahHill You know, I have worked both number using net pay. You are right, the rule is based on gross pay. Thanks
Is there any way to contact you privately? I inherited some money and first time home buyer with average income. I need to find a home soon cuz I'm in a short term lease and don't want to carry this money over into the new year to avoid taxes.
You can email me info@shaheedahhill.com Are you sure it will be taxed, many inheritance may not be. You may want to consult a CPA if you haven't already
i'd have to move to gang-infested territories to get those mortgages. lol
Or you can move out of that area all together.
@@ShaheedahHill find me a new job with better pay and benefits.
Houses are for married ppl with children not baby mothers or single ppl. If your not Married with children rent, stop trying to look like your married with selfproposals and mortgages and go live a lifestyle suitable for where you are in life.
Thank you 😊
@shaedah how can i contact you?
Join my fb group for questions you don't want to post here. If you are looking for a referral, please check description of videos. Thanks
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