Can we afford a 300,000 dollar house on our income?
My husband and I are looking to purchase a 300,000 house, nothing crazy. We have a total income of 73,800 a year before taxes and have 150,000$ grand available for a down payment. We were hoping to take a 15 year mortgage. Our monthly expenses are quite low, 300$ for food, $400 for our child, 100$ for car insurance and 150$ for gas: total 950$ a month and another 250$ goes to my son's education fund. We don't pay anything for cell phones or internet because we get it unlimited for free from our jobs. My credit score is about 750 and my husband's is around 630. After taxes we make around 4,400 + 200 child tax so after our usual expenses we have 3,400 left for mortgage payments, insurance and electricity, and extra spending/savings. We live in Canada, so we don't pay for water, its a part of our taxes. Do you think this is reasonable? Also, would anybody know how we can estimate the interest level and monthly payments that we would need to make? I really hope we can find a decent house for 300,000. Its really hard to find anything bigger than a duplex for 300,000, but it's not unheard of. My parents keep telling us that we're poor and that should be making enough money by now to afford a 650,000 house like they have (we're 26 and 30). THANKS!