Budget advice?? High Mortgage %

02jte · Joined: 21 Aug 2007 Posts: 3 2.60 Dollars($)

Hi - If this is in the wrong forum I apologize. I am currently looking to buy a property in Boston as I am starting a new job up there. I have 2 specific properties in mind. Can someone analyze my monthly budget make-up if I went with the highest priced property? I'm worried that my monthly housing payments are too high and my disposable income too low.

Mortgage: $2550
Taxes: $375
Condo Fee: $300
Insurance: $75

Food: $500
Transportation: $150
Gym: $60
Car insurance $125
Cable/Internet: $150
Cell Phone: $60
Electricity: $100
401K $250

TOTAL: $4695

Net Income: $5833

Disposable: $1138

As you can see, total housing equals around 56% of my total net income for the month. I'm thinking that $1100 for spending or investment is not bad, but I haven't had this problem before. I understand this is personal spending preference, but am I way off base? Please let me know if you think I'm missing any common expense items.

Also - I do not have any debt. All Credit Cards are paid off and I rarely use them. No car payments either.

Thanks in advance!!

Jon

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

"As you can see, total housing equals around 56% of my total net income for the month."

Yes it is way too high, you need to bring it down.

What is your credit profile like? And what is your credit score?

Miller

02jte · Joined: 21 Aug 2007 Posts: 3 2.60 Dollars($)

My credit is "excellent" - score of 786 when I checked Experian last week..

Is it way too high because my disposable income is too low? Or when the ratio breaches a certain benchmark is it considered too high? I really don't spend much on anything else besides the line items mentioned above. Obviously there will be months when I go over the proposed budget, but the $1100 in disposable should cover, right?

Thanks for your help!

02jte · Joined: 21 Aug 2007 Posts: 3 2.60 Dollars($)

I should add that the mortgage payment is assuming a 30 yr fixed loan of $412,000 at 6.25% - no points. One of my competing banks called me today with this rate, it was 6.375% yesterday. I haven't locked in anything yet..

0.10 Dollars($)

Hi,

I think you should consult with a financial advisor as he will be able to plan a definite budget for you.

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