How I Researched to Buy a House

Topics: Debt, Fixed rate mortgage, Loan Pages: 7 (1305 words) Published: August 16, 2013
Career: Computer Software Engineer V
Salary in different locations:
City| Median Salary| Average Home Cost| Other Contributing Factors| San Jose, CA| $142,266| $681k| Almost in the heart of the silicon valley, computer central of the world| New York City, NY| $137, 207| $375k| Capital of the world, jobs are everywhere, also much media and stuff goes on | Carmel-by-the-Sea, CA| $130,375| $1,245k| Very calm, peaceful place, right next to the sea| Austerlitz, NY| $122,968| $395k| Small, rural community that enjoys much wildlife and scenery| San Francisco, CA| $142,149| $809k| Biggest port cities in the US, also in the silicon valley area, major tech companies held there.| Information from:


Planned Destination: NY
The average salary of a computer software engineer V, on a national level, is $117,673. The lowest amount is $97,057, and the most is $139,309.

However, in NY, the median salary is $137, 207.
Information From: My Dream Home:

After hours of searching for a home that would accommodate to my desires, I finally found this house in Austerlitz, NY. It is located in a rural community, which enjoys a calm and “slow” life. It is set on a place where there are 1,651 inhabitants, which makes it a perfect town for me. Location: 607 Stonewall Rd., Austerlitz, NY 12017

Price: $995,000

Beds: 5

Baths: 4

House Size: 2,505 sq. ft.: 70 acres

Year Built: 1941
Other Facts:
1) 2:30 hours away from NYC
2) Town named after Battle of Austerlitz
3) Has a fireplace
4) 2 car garage
5) Hardwood flooring
6) Security System
7) Woodland View
8) Water supply from well

How Much Can I Spend on a Home?

According to various lenders, the recommended amount for a monthly payment should be 25% of your annual income, so according to the math of my career, this is what I can afford to spend:

Possible AVG Income: $137,207
$137,207 X .25 = 34,301.75 Annually
$34,301.75 ÷ 12 = 2,858.50 Monthly

According to the math, I can afford $2,858.50 monthly on the house payments.

If I were to use a 30-yr. fixed mortgage plan, the most my wallet gives me is: 30 years X 12 months X 2,858.50 disposition = $1,029,060

According to the math, this house is accessible to me and my wages.

There were many other places that I could have chosen to live to, but due to many reasons, like personal or economical, I chose not to. However, these are the other options that I have considered: 1) 0 SE Corner Dolores &# 9TH, Carmel, CA 93921 ($1,995,000)

2) 149 S. Ct, Lenox, NY 10038 ($129,000)

Loans Information:

Original Loan Amount: $140,000

Terms (Years): 30

Annual Interest Rate: 3%

Payment per year: 12

Payment: $590.25

Total Payments: $212,488.43

Amortization Table (First 24 monthly Payments):

Other loan:

Original Loan Amount: $140,000

Terms (Years): 15

Annual Interest Rate: 2.5%

Payment per year: 12

Payment: $933.50

Total Payments: $168,030.88

Amortization Table (First 24 monthly Payments):

My choice of a loan:

Between the two loans that I have on here, I decided that I am going to take the 30 fixed rate loan, for the reason that I will be saving myself, monthly, $345.25, which is money that I can potentially use to put into a retirement account or use to make any reparations to the house if necessary. Here, I will show an Amortization chart of the yearly payments of the 30 year term:

Additional Fees associated with owning a home:
1) Inspection Fees
2) Closing Fees
3) Insurance
a. Fire
b. Flood
c. Earthquake
d. Hail
e. Hurricanes
f. Tornado
g. Wildfire
h. Theft
4) Property Taxes
5) Maintenance/upkeep fees
i. Yard Work
j. Plumbing
k. Electrician
l. Carpenter
m. AC
There are...
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