This isn't Ramsey's first venture in Tennessee. In 2021, he listed his 13,517-square-foot French château in Franklin for $15.45 million.
By the way, you should aim for a down payment of at least 20%. Not only does a bigger down payment mean smaller monthly payments and less debt, but putting 20% down means you won't have to pay for PMI—potentially saving you hundreds every month.
Closing costs should also be taken into consideration. These include various fees and taxes and generally fall between 2% and 2.25% of the listing price. For a $500,000 home, closing costs could range from $10,000 to $11,250. If you add up the down payment and closing costs, this will cost around $30,000.
Overall, when preparing a house to sell, a safe number to stay below is 10% of the asking price. When budgeting, allocate 1%–3% of your asking price each for staging and lawn and landscaping, and use comps to help determine the best home improvements to invest in.
Before you sell, you'll want to ensure your home is in the best condition possible so it appeals to buyers. However, you'll also want to monitor your bottom line. You don't want to invest more than you stand to recoup.
If I sell my house, how much do I keep? After selling your home, you must pay any outstanding mortgage, agent commissions, and closing fees. You keep the remaining money after settling these costs. After all the deductions, you have 60 to 85 percent of the house's total sale.
Government Assistance
For example, California has the CalHFA program available to qualified low-income buyers. The program provides grants and loans to eligible borrowers, and the money can either directly subsidize part of a down payment, or cover the entire thing, depending on certain factors.
Typically, you can expect between 2% and 5% of the loan amount. So, on a $250,000 home purchase, you could pay between $5,000 and $12,500 in closing costs. Your mortgage loan officer can help you figure out the best way to cover these costs.
Generally, deductible closing costs are those for interest, certain mortgage points and deductible real estate taxes. Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including: Abstract fees.
The Bottom Line. On a $70,000 salary using a 50% DTI, you could potentially afford a house worth between $200,000 to $250,000, depending on your specific financial situation.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
FHA loans. The Federal Housing Administration (FHA) insures FHA loans, which allows mortgage lenders to accept a credit score as low as 580 with a 3.5 percent down payment, or 500 with a 10 percent down payment.
He goes on to say: “Paying off your mortgage early seems impossible but it is completely doable and people do it all the time, but how can you do it and why would you want to put in the extra effort? Paying off your mortgage early will rev up your wealth building.”
Dave Ramsey BSMM. I daily drive a Jaguar XJ. It's a 2016. Paid $22k for it in June.
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To afford a $250,000 house, you typically need an annual income between $62,000 to $80,000, depending on your financial situation, down payment, credit score, and current market conditions. However, this is a general range, and your specific circumstances will determine the exact income required.
Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually, the buyer pays for most of the closing costs, but there are instances when the seller may also have to pay some fees at closing.
The short answer: Yes, sellers can refuse to pay their buyer's closing costs. Sometimes, they may be unwilling or unable to cover this cost — but in other situations, having the seller pay for the buyer's agent fees can actually be a win for both parties.
If you can't afford to pay your closing costs up-front, you may be able to roll all or some of the fees into your loan. You won't pay anything at closing, but the lender adds the fees to your principal, increasing your total loan amount and monthly mortgage payment.
The costs can include everything from appraisal fees, title search fees and title insurance, to fees for a home inspection, property survey and any attorney's fees. You may also be charged to record your deed along with property transfer taxes.
The median-home sales price in the United States is north of $400,000. That makes the average commission about $12,000. This means you need eight deals to gross $100,000 and about 10 to net $100,000.
After you pay off any mortgages or liens on the house and pay the government for any capital gains or other taxes and pay off your realtors and lawyers (if any), you can do what you like with the remaining funds.