Could you afford buying a 300000 house with good credit a making 60000 a year and have 89000 dollars in the bank could you afford it?

Answer 1

Yes and no.

With 20% down on $300,000 ($60K), you would owe $240,000. At 6% over 30 years, that is $1438.92/mo, plus taxes and insurance.

With $60,000/yr income, that is $5000/mo gross.

Just using these figures, $1438.92 / $5000 = 28.76% DTI (debt to income). Add in property taxes and insurance, and the DTI increases. If you also have a car payment, add that monthly payment in.

Lenders will probably give you a loan. The bigger question is SHOULD you do it.

In the current economy, depending on where you live, you could probably get a house on a short sale that is worth $300,000 for a lot less (which varies depending on the lender, and the amount of properties in the area in foreclosure). For example, buy a $300,000 house for $240,000, put 20% down ($48,000). This saves you $60K on the purchase and $12K more in cash to do repairs and upgrades.

It also depends on how stable your income is. It is easy to lose it all without realizing it. I know several people who lost everything ($1M or more in equity) an how tough it is when you get short of cash, even with good credit. Keep as much in the bank as possible. Get a modest house that is big enough, don't go overboard.