Financial Goals | Imamother

amother

Blonde

Fri, Apr 21 2017, 3:38 pm

If I'd like to make financial goals for myself, how much money do I need saved up for buying house? I know it varies of course so I'll try to be a bit more specific. For example if I want to put a budget for a house at 500,000, what should my goal be for a down payment? How much percent of my income should I budget on housing? (Including insurance, taxes, utilities, repairs, or any other expenses homeowners have).

amother

Purple

Fri, Apr 21 2017, 4:08 pm

At time of purchase: 110,000 - 120,000
20% of 500,000 = 100,000 down payment + approx 15,000 closing costs (+\- 5,000)

Monthly morgage payment:
400,000 loan @ 4% over 30 years: 1900
Property tax: 1,000 (assuming 12,000\year in NJ)
Home Owner insurance: $80
HOA - development fees: ??
Minimum $2980 monthly

Maintenance:
Lawn: $30\month

Depends on the age of the home. On a new home with new applicances there shouldn't be a lot of costs. New homes have extras needed like curtains, hooks, rods, closet fixtures, etc.
Older homes have appliance repairs,roof, etc.

Officially your mortgage shouldn't be more then 30% of your salary. So theoretically you should be making 10,000\ month or 120,000 per year before setting aside 3,000\month on housing. Many people spend more of their salary on housing, but with tuition and saving for weddings, bar mitzvas and yeshiva for multiple kids it really really stretches you .

amother

Oak

Fri, Apr 21 2017, 4:21 pm

amother wrote:

At time of purchase: 110,000 - 120,000
20% of 500,000 = 100,000 down payment 15,000 closing costs (+\- 5,000)

Monthly morgage payment:
400,000 loan @ 4% over 30 years: 1900
Property tax: 1,000 (assuming 12,000\year in NJ)
Home Owner insurance: $80
HOA - development fees: ??
Minimum $2980 monthly

Maintenance:
Lawn: $30\month

Depends on the age of the home. On a new home with new applicances there shouldn't be a lot of costs. New homes have extras needed like curtains, hooks, rods, closet fixtures, etc.
Older homes have appliance repairs,roof, etc.

Officially your mortgage shouldn't be more then 30% of your salary. So theoretically you should be making 10,000\ month or 120,000 per year before setting aside 3,000\month on housing. Many people spend more of their salary on housing, but with tuition and saving for weddings, bar mitzvas and yeshiva for multiple kids it really really stretches you .

I am in the business closing costs depend on where u r buying. Monsey is closer to 20k

amother

Purple

Mon, Apr 24 2017, 9:24 am

Wanted to add that you should figure $450 minimum\month for utilities: gas, electric, water, phone and internet. Depending on your location and home size it may be more and you may want to fit that in (like summer air and water may push it to $650 some months)

amother

Blonde

Mon, Apr 24 2017, 6:52 pm

amother wrote:

Thank u so much! This was very helpful!

amother

Seagreen

Mon, Apr 24 2017, 9:31 pm

You can buy a basic lawn mower and cut you own grass if you want to save the money. It's not such a huge expense, but I'm surprised its considered an automatic cost of having a house.

amother

Lavender

Mon, Apr 24 2017, 9:40 pm

amother wrote:

You can buy a basic lawn mower and cut you own grass if you want to save the money. It's not such a huge expense, but I'm surprised its considered an automatic cost of having a house.

nearing 10 years as a home owner... yet to pay someone to cut my lawn.

amother

Brunette

Mon, Apr 24 2017, 9:43 pm

depends on size of property. We used to live in NJ- mowed our own lawn, there wasn't much of it. We now live on over an acre of land. Even though much of that is trees it's still worth it for us to hire someone.

amother

Oak

Mon, Apr 24 2017, 10:09 pm

amother wrote:

You can buy a basic lawn mower and cut you own grass if you want to save the money. It's not such a huge expense, but I'm surprised its considered an automatic cost of having a house.

You can do that and I used to do it in my old house. My property now is an acre size and a hill which makes it very very difficult. Dh and I did it a few times....it took all day.
Ttly depends on property size . If u have the time. Etc

amother

Purple

Mon, Apr 24 2017, 10:26 pm

Really depends on the size of the property. DH and I both work full time plus side jobs so $30 to have someone cut our lawn is a no-brainer. We found someone really cheap. Plus we don't have a garage or place to store a mower so at this point we can't anyway.

A lot of the properties around us are .30 to 1 acre or more. It takes a long time to cut with a standard mower.

And in the scheme of things it probably costs us total $120\year to cut our grass because we do our own leaves, yard cleanup, gardening, snow removal and gutters (I was kind of including that as $30 year round). A lawn mower you have to buy, oil, repair, buy oil. I"m not so sure we are so much worse off.

BabsB

Tue, Apr 25 2017, 12:35 am

1 acre??? Where I am from people own 10+ acres. We mow our own lawns...

Anyway, many, many, many financial experts advise your home costs should not exceed 25% of your income. Many also suggest no more than a 15 yr fixed mortgage.

My Dad, who gives old school advice, always said maximum a house is your income times 2.5 and max on a car is your income divided by 2.5. Even though the economics have changed, his advice still seems pretty sound.