Home affordability

I pay rent @1400
Buying a house and my mortgage will be @2200
Am I gonna be ok?
Income = 90k per year

>buying a house
>getting a mortgage
>ever

if you can't pay cash you can't afford the house. keep renting goy

This. I can't tell you enough how many fools I see going to the bank for loans on a house or a car or whatever. If you can't buy the house outright, stay in rent.

What the fuck? You can get a starter home on a 20 yr mortgage for way cheaper than that.

If you can get a 15 or 18 year, max 20 year mortgage (latter with a sizeable down payment) you can build equity fast enough to justify the debt.

Am I correct that you borrowed in excess of $400,000 on your mortgage? Or is the $2,200 also include property taxes?

That's a debt-to-income ratio of 4.5x which is quite high. Historically, likely well before you were born, a ratio considered safe was 2x or 2.5x with high cost of living places such as the California coast stretching to 3x.

You'll be okay so long as you don't lose your job or if you have a lot of savings. However, realize that you're coughing up $26,400 every year and, if that amount does not include property taxes, you'll have to cough up another $4,000 - $16,000 or so per year depending on tax rates.

>Paying more for Mortgage than Rent

Holy shit you're doing it wrong.

Exactly my thoughts.

>tfw rent here is 2200 and a 30 year mortgage for a house that isn't falling apart is 2500 minimum
I can't afford either of these

> don't get a mortgage

the fuck is wrong with you guys.

There is nothing wrong with buying a home and getting a mortage. It's just important that you buy the right home, at the right time, at the right price.

Otherwise your gonna be saving your whole fuckin life and meanwhile throwing money away on rent, instead of contributing towards equity.

Yes OP, I think it's time for you to buy. Provided you can find a home at a good price, which may be tricky right now since the market is inflated.

So maybe wait 2 years, then buy?

uhm, we ned some details my man. the fuck do you live? what do you do for a living?

>what is the time value of money

>interest
>taxes
>maintenance
>not thrown away

If you are going to buy a house, make sure it's the right place. Most houses in the United States has equity/appreciation rates that don't keep up with the interest you're paying. Renting is for cucks. Live with a family member for free or very cheap.

It's not if the property value increases more than those costs. Property is an amazing opportunity to make money if you're a typical 4 chan autist. You can buy something shitty and spend all the weekends you used to spend on LOL and anime porn fixing the place up.

I'm curious.

I live in Houston, and I have the ability to buy a small house in an area that's growing.

I'm thinking about $160,000, 30-year mortgage.

That puts me at total mortgage around $900, which is much cheaper than renting here. Most apartments are around $900, not including utilities and whatnot.

I make about $46,000 a year, and my car is paid off. I intend to rent out a room to young professionals for about $500/month, all bills paid.

Should I swing it, Veeky Forums? I'm 24.

You should be able to pay off 160k in way fewer than 30 years desu.

I think it's likely, but I don't want to over-draw my current wages.

I'm set to get a solid raise here pretty soon, likely putting me over $52k.

Can't I re-finance it to a shorter term later, or just pay a little extra against the principle when convenient?

A big thing is that I'm 70% sure the value will go up, as Houston is rapidly expanding right now.

>buying an American house period
oh my god you people just never learn

How do you know he is American?

i know
we all know

>not waiting until the housing bubble pops