Consumption and Real Estate
How much will a condo really cost?
Question : How much will a condo really cost?
I’m not at a steady job now, but say I make $ 40K a year before taxes and want to finance a condo for 15 years (probably upgrading to a house in 5-10). How expensive of a condo should I get? Also, how much will it cost a month with interest, HOA, insurance, etc? How much of that will be principle payments?
I know that’s a lot, but any advice is appreciated.
Clarification: Regardless of the local market, what can a salary like that afford?
condo insurance cost
Best answer:
Answer by Loli M
Uh, well condos out here in CA run between 309K-1Mil depending on the area, square footage and the like. HOA fees also run the gammut. Your insurance should be rolled into your mortgage payment.
Have you done a pre-qual to find out if you can get a conventional loan?
I suggest going to http://www.bankrate.com/brm/mortgage-calculator.asp. This will give you an estimate of the monthly payments you might have. As a rule of thumb they say your mortgage, HOA, and insurance, called PITI should not exceed 28% of your income. Also, they say you can afford 2 to 2.5 times your income, leaving you at around $ 80-$ 120k. However, this doesn’t hold true to all cases.