I’ll certainly want to see more numbers in the coming months. But some are calling the double dip in prices official: see http://www.cnbc.com/id/42904204
I’m going to hold off on purchasing.
How much do you think i would be eligible for in a mortgage loan? I really have no debt except for student loans. And i am looking in the Chicago suburbs. Thanks for any help
depends on how much your student loans are…they count you know.
The question is really not what you’re eligible for. The question is what can you afford. Banks will approve you for WAY more than you should borrow. That’s part of what got us into the whole sub-prime loan debacle. In any case, a good rule of thumb is that your house payment should be around 25% of your take home pay. So at 41,000, I’m going to assume that you pay about 35% in total taxes. That means you take home about 2,250 per month. With that number, your mortgage payment should be about $ 560-600 to follow the “rule.” Assuming a 5% loan, you can borrow around $ 110,000.
Roughly $ 120-150k with a decent down payment