Is it possible to afford a $700,000 usd home if...

How can you be NOT married yet but have a husband?

Yes if you make as much money as you say you do you can make enough money in 6 years. If you get a mortgage it will probably take over about 8 years.

Just keep to a budget of 20,000 a year between you, NOT each. That means every week you can spend 380 between you.

If you want to save up enough money that fast you cant waste money on luxuries.

You can get a 10,000 SF home with a pool and more for $500,000 in NW Arkansas; Walmart home office territory. I think you can get all you are wanting for much less if you move to an area like this.

No wonder there is a financial crisis in USA. Not even one among the entire lot bothered about one basic data needed to make such a serious financial decision. Savings. It is not important how much you earn but how much you can save.

You can afford a $700000 house with a $100,000 a year income if you have a good enough savings rate and enough past savings. Similarly you can cannot afford such a house even with $1,000,000 a year if you spend $990,000 a year.

The right calculation is like this

Assuming a loan interest rate at 4% per annum (simple) and 30 year repayment period(with 20% down payment), the first month interest alone will be $1867 and loan installment will be $1556. Of course your loan interest amount will constantly decrease as you keep repaying. But if you get kids, their maintenance and education will grow in the counter direction and will eat away every dollar saved in the interest.

This should be high school maths in most places. I suggest USA start a compulsory paper on savings and financial literacy for every kid who passes out of school at least in the last year.

If you have to ask this question you are not financially mature enough to buy a house.

Btw ... this all a moot point. Based on the current lending standards you wont be able to get financing with your current income on a 700k house.

Okay your THI is 140k a year and want to buy a house thats 700k? Thats exactly why we are in recession... people spending outside of their means. You have no business buying that house. You want a 700k house? Earn more money. This is why bank are doing loan mods...they made a bad lending decision but on the same token the buyer made a bad financial decision. Now everybody who was responsible and bought a house they could afford has to pay for the irresponsible persons mistakes. Id like a 700k house too but i cant afford it and neither can you.

you should probably be talking to a bank about this, not us lol only they can give you a straight and proper answer and give you interest rates etc. and how long it will take you to pay that loan off.

.....or food...

What about the small amount of money you'd have left over, maybe a little lack of freedom moneywise, just for a house thats is an unnecessary size. Maybe you'd be happier just paying off a small home and filling it with cool things, and having the $ for vacations! :)

Your mortgage would take five years of your untaxed income, so about a third of your joint net income for a twenty-five year period. I'm guessing you are American and although that kind of debt is necessary in my country (England), I think Americans generally don't like to take on that level of borrowing. Technically you could afford it, but you may be advised to do what everyone else does and start small.

maybe you should get your information about this from some accountant specialized in this intead of on "isitnormal.com"!!!
this is serious stuff, and coming here is like shaking a magic 8 ball, you know what i'm saying!?!?
and for living in the same house forever, man, if you could, that's really good.
good luck!

Your payments would be so high!!!! Remember to add 200-500 a month to your house payment for property taxes & insurance. Google mortgage calculators & mess around with it.

And we wonder why our country is in financial crisis. Too many people want filet mignon on a hamburger budget.

Wouldn't your parents still have a good 15 years left on their mortgage? Living there 15 years I would think they're only half way done paying for their house.