How much should my house cost if i make $100,000 a year?
The best way to answer that is to work backwards from your monthly income. Most banks have caps on the percentage of debt your household should have relative to your income and you should have your own cap on what is sensible for your family in terms of cash going out. On $100K per year, your monthly income is about $8300 before tax. Mortgage rates are about 5.25%, that's a safe estimate for now). A $600,000 home will cost you about $2100 per month (assuming an interest only loan, 20% down). Each $100,000 in home price will cost you $438/ month again assuming an interest only loan. If you don't have the down payment, you could use FHA financing, where you can put as little as 3.5% down. But then the monthly cash out lay is on that same $600K home, $2533 AND you'll have to pay private mortgage insurance which adds something like $400 (double check me on this). Your best approach is to calculate your monthly expenses, and get a sense of what you could devote to a house payment. Multiply that by 12, divide it by current mortgage rates and you'll get a sense of the final home price you can afford. Remember that you will also need to spend money on insurance and property taxes. So, if you can afford to spend $2000 on your mortgage, multiplying by 12 gives you $24000 per year. Divide that by 5.25% (.0525) and you get $457,142. That's approximately what you can afford to buy.
Algebra Story Problem?
This is a progression question. However, I'm not sure if its a Arithmatic Progression or a Geometric Progression. I'll try to discuss both solutions. Arithmatic Progression: The value of nth term, Tn, is given by: Tn = a + (n-1)d ; where a is the first term value, d is the difference between each subsequent term. substituting n = 10, Tn = 125,000, a = 96,000 ; 125,000 = 96,000 + 9d 9d = 29,000 d = 3222.22 This means that, every year, the value of the house will increase by $3222.22. Geometric progression: The value for nth term, Tn, is given by: Tn = a . r^(n-1) ; where a is the value of the first term, r is the ratio between 2 consecutive terms. again, substituting n = 10, Tn = 125,000, a = 96,000 ; 125,000 = 96,000 r^9 r^9 = 125/96 r = 1.0297 This means that every year, the value of their house will be multiplied by 1.0297, or increased by 2.97% Hope this helps =)
Is a $70k salary enough for a family of 3 in San Jose, CA?
Well, "Simple Living" is a pretty vague descriptor. Do you already own a home (I'm guessing not). Will your partner be a stay-at-home parent or work? Will you have children, and if so, how many? Do/Will those children have any special needs? Do you have family that can help care for them?In short, this is too broad a question with too few details.However, I'll try to give you an answer. $70,000 a year is about $4,000 per month after taxes. Here's a breakdown, assuming you rent. With median home prices being $739,000, owning a home is not in your future at that salary:$4,000 income$2,625 rent (median rent in San Jose per San Jose Home Prices and Home Values - Zillow)$400 car payment$150 insurance$150 gas for car$150 electricity$75 cellphone$200 food==============$200 remainingThis all assumes that you don't have any additional deductions in your pay, medical expenses, retirement savings, or additional pay.Frankly, it seems to me that $70,000 per year in San Jose is barely surviving. Now, I browsed Craigslist for a while, and did find some two bedroom apartments and townhouses for $1,500-$1,800, so you could probably find a cheaper place to live. Of course, I know nothing about the area, so I couldn't tell you if those places are anywhere you'd want to live.This is the exact reason I stopped looking in California; your cost of living is ridiculously absurd. There isn't anywhere you couldn't live in Austin for that kind of money, and you can live a very comfortable life for $70,000/yr here.Of course, the Bay Area is one of the most expensive places to live in the country.
California VS. Arizona Cost of Living.?
If you have a job lined up you will fare better in Arizona. I know first hand what you get in California vs what you get in AZ. I'm from both Buckeye, AZ and San Diego. In SD I get a 2br apartment in Pacific Beach for $1600 per month. In Buckeye I live in a 7 br. two story home with an attached 3 car garage about 4,500 SF for $1400 per month and it's less than six years old. You can get a smaller version of the same new house for $900 per month and that's a 4br. Wages are a little less, but that really depends upon what skills you have. Your vehicle registration is about 1/2 of CA. Your drivers license lasts many times longer in AZ because you pay onetime and don't have to renew it every four years. Gasoline is always cheaper in AZ. If you play golf then you will love the green fees in AZ. A 100+ dollar green fee in CA for a nice course can be played in AZ. for $29. Surprisingly cigarettes in CA are about two dollars a pack less than AZ. Beer and booze is about the same price. Your electric bill in the summer may be higher, but that depends where abouts in California you are currently living. The heating bills in the winter in AZ are dirt cheap because the newer houses are so well insulated. It's your call to make because it's your money. I personally prefer Arizona over California, but business and family require that I split my time between the two. The traffic in AZ is so much lighter unless you live in the east valley area, then it sort of reminds me of I-5 in San Diego at rush hour. When I work in the west valley here I enjoy commuting surrounded by cotton fields, goats and cows. The open landscaping I think is what I like most about Arizona.