OK let's say that you make 100 dollars every month. But you've got bills to pay!
$14.00 for your car payment
$2.00 for gas
$8.00 for groceries
$6.00 for random utilities
$3.00 for student loans
$8.50 for insurance
$2.00 to take your wife out with (wink)
$18.00 for rent. it's an expensive town.
----------
= $61.50 total
not bad. you're still saving $38.50 every month. good job! Since you want to buy a house, subtract the rent from that. = $47.50
OK now you call a mortgage person to find out how much a house is going to cost. Never mind that the house you will probably buy costs you $34 a month. That would leave you with about $13 bucks left over for a rainy day.
The mortgage person says no worries, they will approve a loan that will cost you $48.00 (!!) a month. hmm. I guess you wont have to worry about putting any electricity or food in that house. More room for us!
$14.00 for your car payment
$2.00 for gas
$8.00 for groceries
$6.00 for random utilities
$3.00 for student loans
$8.50 for insurance
$2.00 to take your wife out with (wink)
$18.00 for rent. it's an expensive town.
----------
= $61.50 total
not bad. you're still saving $38.50 every month. good job! Since you want to buy a house, subtract the rent from that. = $47.50
OK now you call a mortgage person to find out how much a house is going to cost. Never mind that the house you will probably buy costs you $34 a month. That would leave you with about $13 bucks left over for a rainy day.
The mortgage person says no worries, they will approve a loan that will cost you $48.00 (!!) a month. hmm. I guess you wont have to worry about putting any electricity or food in that house. More room for us!
