$4,000 x .33 allows you
$1,320 PITI (Principal, Interest, Taxes & Insurance)
These numbers just give you some fuel for thought:
$1,000/month at 5% =$187,000 mortgage amount
$1,000/month at 4%= $210,000 mortgage amount
$1,000/month at 3% = $271,000 mortgage amount
We don't recommend that you overextend yourself... But if you have potential for increased earnings, when you are ready to buy, you may want to consider negotiating a purchase where the Seller pays discount points at closing to reduce your interest rate/payments for the first two years. Most lenders allow you to Qualify at the second year rate.
Temporary Buydown Calculator:
Keep in mind that buying a home doesn't just end with the purchase itself; there are ongoing costs. Barbara is correct you definitely don't want to over extend yourself, and the payment structure that she suggested could possibly work--assuming that you don't have too much debt.
Something that you'll have to ask yourself is what would you do if you were to purchase that 300K home this month, you were to lose your job at the end of this month, and it were to take you 3-6 months to find a new job. Could you afford to keep making those payments and paying your other bills on-time for the next 3-6 months while looking for work? If not, then you should probably wait or consider buying something less expensive.
Here's how I determined that:
.4 * 4K = 1.6K (the maximal mortgage payment you'd be able to qualify for--assuming you had no other debt)
.8 * 300K * (.055/12) / (1 - (1 + .055/12) ^ -360) = 1362.69
.8 * 300K * (.06/12) / (1 - (1 + .06/12) ^ -360) = 1438.92
.85 * 300K * (.055/12) / (1 - (1 + .055/12) ^ -360) = 1447.86 + mortgage insurance
.85 * 300K * (.06/12) / (1 - (1 + .06/12) ^ -360) = 1528.85 + mortgage insurance
.9 * 300K * (.055/12) / (1 - (1 + .055/12) ^ -360) = 1533.03 + mortgage insurance
.9 * 300K * (.06/12) / (1 - (1 + .06/12) ^ -360) = 1618.79 + mortgage insurance
Weichert Capital Properties and Estates
1051 Long Ridge Rd
Stamford, CT 06611
203-322-8800 ext 229
I would say the best thing for you to do is contact a Lender to get pre approved . Also if you do not have one I would be more then happy to refer one to you . Also if you would like I can send you listing of homes that you can view . Please do not hesitate to contact me at anytime with any questions you may have . I look f orward to hearing from you soon.
Home Selling Assistance Platinum