qualify

How much house can I afford? - Buying a House!



Sharing buttons:

so you're thinking about buying a house

hmm that's very exciting but how much

house can you actually afford and what

should you put down for a down payment

I'm going to share with you guys what I

believe you can afford and what money

you should put down I can't wait to

share this with you guys today

good day subscribers thank you so much

for joining me today I am Jeremy this is

the financial education Channel and

today we're talking about how much house

can you afford what payments can you

afford how much should you put down for

a down payment I'm going to give you

guys all those answers today and I can't

wait to share this with you so first off

you're going to buy a house you need to

in my opinion not get a mortgage payment

that is more than one third of what your

income is

after taxes so maximum of one third of

your income after taxes is very

important after taxes I can go toward a

mortgage I would prefer one fourth of

your income before taxes goes toward a

mortgage the reason being is you never

want to strap yourself where you're too

much into going into that mortgage and

you are leaving yourself with not much

to pay all the other bills because

you're still going to have health

insurance you're still going to have car

payments you're still going to have you

know electricity water bills house

expenses what happens when something

goes wrong with that house home

improvement stuff emergency expenses so

many different factors you never want to

strap your salt too heavily on okay you

know even if you think old man I have

enough set aside in my other bills are

low enough right now that if half of my

income goes toward the mortgage that's

okay in my opinion that's not okay one

third is the maximum 33 percent of your

income is the most you want to put

toward a more

in my opinion you do not want to strap

yourself you do not want to strap

yourself now

how much for a down payment should you

put I am going to go against

conventional wisdom conventional wisdom

will tell you you need to put as much as

you can

toward that down payment and try to get

your mortgage payments as low as

possible no no no no absolutely not

horrible idea in my opinion horrible

idea

maybe that was okay at one point in time

that's no longer okay

imagine and you might be one of those

people watching this video or your

parents might have been one of these

people one of the people that bought a

house in 2004 2005 2006 or 2007 when

home prices were way up there

they put a ton of money down on their

home 20% 25% 30% because that's what

they were told was good and then what

happened housing prices went they took a

big dump and then what happened all

those houses were underwater at that

point they were all worth far far far

less than what those people paid for

which meant all the money they put

toward that downpayment is wasted

completely wasted because they can't

even get back what they bought the house

for if they paid three hundred thousand

for that house and it's worth 150

thousand do you think their down payment

went toward anything no it went toward

absolutely nothing it was completely

wasted so in my opinion as far as

putting money down toward a house put as

little as possible if you can try to use

FHA you know those first-time homebuyer

type things if you have a low income a

lot of states have low income take

programs where you only have to put 1%

2% maybe 3% down if anything down and if

you don't even if you aren't in those

income brackets and say you're making a

hundred thousand a year or fifty

thousand or two hundred thousand however

much you're doing really good still put

as little money down as you possibly can

because you don't want to end up in a

situation like so many people ended up

that just got wiped out you can always

put that money to the house later on

down the road if you want if that house

holds its value for the next 5-10 years

you can always put that extra 20,000

extra 50,000 toward the house payment

and get that mortgage way down you can

do that at that point there's no rush to

do it break that in there because if the

house loses a massive amount of value 20

30 40 percent your down payment just it

erode it it became nothing at that point

so that's why I go against conventional

wisdom on that so let's wrap this up no

more than a third of your income after

taxes goes toward a mortgage payment and

if you're a renter keep that in mind if

you're renting same type of philosophy

no more than one third of your income

after taxes should go toward that one

for 25 percent that's really the good

zone in my opinion number two put as

little as possible toward a down payment

you can always put more money later on

down the road if you want you can always

do that later on that on the road but

don't do it right from the start don't

do it in my opinion so anyways if that

covers that subject today guys I hope

this helped immensely in I hope

everything works out buying a house is a

very exciting thing so I thank you so

much for watching guys if you haven't

subscribed you may want to I talk a ton

about personal finance this videos

personal finance I talk about

investments I talk about stock market I

talk about entrepreneurship on a young

business owner I give a lot of tips to

other entrepreneurs and business owners

and I do a lot of videos like that thank

you so much for watching guys have a

great day