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Nickyweg t1_iybkdyd wrote

Reply to comment by SmarterShelter in If Buying a House Is Cheaper Than Paying Rent...? by SmarterShelter

What do you have in savings and how much of a down payment can you afford ?

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SmarterShelter OP t1_iybkx43 wrote

I've got about 100K including my retirement savings. I'd like to put down no more than 64K to keep a year of living expenses, but I'm not sure if that's realistic.

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Nickyweg t1_iyblilk wrote

Where in the country are you located? Do you plan to stay there a while ?

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SmarterShelter OP t1_iyblphm wrote

Los Angeles. I don't care for the city but don't have any plans to leave in the next 15 years.

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Nickyweg t1_iybm0hr wrote

It’s going to cost more monthly for now, but you will lock in that price.

500k with 60k down will run like 3300-3500 a month.

It looks like your break even point would like year 16.

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SmarterShelter OP t1_iybm7yh wrote

Would lenders qualify me for a $3500 mortgage payment if I'm making like 5K a month? I know for rent, they wanted to see 2.5x the rent in income.

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Nickyweg t1_iybmftw wrote

Probably not. I think it’s usually 2-3x yearly income.

You may need more down, moving to a cheaper COL area, or raising your income.

Is 5k post tax ?

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SmarterShelter OP t1_iybnf8a wrote

Hmm... That's helpful. I need to run some numbers with a professional.

The 5k is an ugly mix of pre and post tax income. I'm a professional artist.

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Nickyweg t1_iybnj5q wrote

That’s going to be hard if your income varies a lot month to month

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SmarterShelter OP t1_iybnwmq wrote

Yeah... I mean, it's a hazard of what I do. I've had very brief non-number-based chats with two loan officers, and they said they see it all the time cause everybody in LA works in arts and entertainment.

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