Quote:
Originally Posted by obert
1) I am really upside down on my car that is why I would like to pay it off and can’t trade it in a something cheaper for a cheaper monthly payment.
2) I make good money but nit enough to not be completely house poor. I would be using over 50% of my income on a house payment even with the 20% down.
3) Even now my monthly rent is basically 50% of my income.
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Okay,
1) Give me some numbers on the car - seems unlikely that you are that upside down, but I could be wrong. If this is too personal - send me a private message.
2 & 3) I did some basic calculations based on where you live, what a reasonable home price is, reasonable rent, etc. This tells me you are making around $4,000 per month (net of tax). If this is the case, then you cannot afford a home in Seattle and you should move. Less than $50K per year in Seattle is near poverty level. You have an income problem and need to either further your education and get a higher paying job, or move to a new location with a lower cost of living.
I did some research and in Seattle proper, a small decent older home or a nice smallish 2br apartment is gonna run about $350K. 20% down is $70K. That puts a 15 year fixed rate mortgage at around $2,050 per month.
To afford that, you should have a minimum gross annual salary of about $115K to $120K. If you don't make that, then you cannot afford a home at that price point and not struggle.