Is there something wrong with this....

[GoldieSaysMeep]

It told me I could afford a house that was valued at $1000. Um, where is a house that is valued at $1000. If one exists, I'll just go buy it in cash.

 

[suejai]

It gave me an amount for more than I wanted to spend as well.

What I don't understand is why they ask for the property tax and mortgage insurance values. These items are based on the assessed value of the house and the size of the mortgage so how can I fill that in when that is what is being estimated

 

[ead79]

I must be doing something wrong when entering my info.

The first time I did it, it came back with a number that is double our current home's price.

So I figured under "monthly obligations" I should have also entered our typical monthly budget amounts for food, cable, gas, etc. Well, when I did that it said I could afford a $0 house.

So I'm confused. All I do know is that we bought our home based on the mortgage amount we felt comfortable with, not what we could get approved for by the bank. Our mortage is for less than 2x our annual income, which is conservative on our part. However, I wouldn't want to be strapped with a bigger mortgage payment personally, especially if we start a family and I stop working outside the home.

 

[SC Minnie]

When I entered for a 15 yr mortgage (which is what we currently have) it was pretty much spot on with what it said we could afford vs what our house is currently valued. When I did a 30yr it was fairly accurate with that too.

 

[laurie31]

Wow, the forst time I did it, I included ALL our monthy bills and expenses (kids' sports, music lessons etc.) in the "other obligations" line and it said we could afford a 10,000 house! Then I realized I included our current mortgage in that amount - lol!

I tried again, sans mortgage and kiddie stuff, and it said 322,000!

Not sure which is more shocking!