ilmscore | How Much Money You Need To Afford A $500,000 Home (Don't Listen To Banks)

How Much Money You Need To Afford A $500,000 Home (Don't Listen To Banks)

Published: 2024-01-22
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
According to bank lending standards, an annual income of $142,000 is required to afford a $500,000 home with a 10% down payment and a 7% interest rate.
"So based on the bank's numbers if you want to afford this half a million do home you have to make $142,000 a year."
Personal Finance
Pending
To adhere to Dave Ramsey's 25% rule for housing costs, a monthly take-home pay of $13,200 is necessary if housing costs are $3,300.
"if $3,300 is a monthly cost and this can be no more than 25% of your take-home pay if you multiply this number by four that is going to give us $13,200 this can be your take-home pay after taxes"
Personal Finance
Pending
An annual after-tax income of $158,400 is required if monthly housing costs represent 25% of take-home pay, which is $13,200.
"if we multiply this number by 12 that means your annual income has to be $158,400 after taxes"
Personal Finance
Pending
To afford a $450,000 mortgage at 7% interest in Chicago, Illinois, a gross annual salary of $233,000 is projected.
"if we assume that you live in Chicago Illinois that means that you are going to have to make $233,000 a year in your salary to be able to afford a $450,000 mortgage at a 7% interest rate"
Personal Finance
Pending
The '751510 plan' suggests that after-tax income should be allocated with a maximum of 75% for spending, a minimum of 15% for investing, and a minimum of 10% for saving.
"for every dollar that you earn from now on from here on out and this is after taxes 75 cents is the maximum that you spend 15 cents is the minimum that you're investing and 10 cents is the minimum that you're saving"
Personal Finance
Pending
Real estate agents commonly advise that a home is the largest investment an individual will make.
"when I used to work as a real estate agent well one of the things that most agents will say is that your home is the biggest investment that you'll ever make"
Real Estate
Pending
If a business investment yields a 20% return, it may be more advantageous than putting down a 20% mortgage on a home with a 7% interest rate.
"if your mortgage is 7% but you can invest this money into your business and get a 20% % return Then sure maybe you don't need to put down a 20% mortgage"
Personal Finance
Pending