Buy a house, despite the $ 100K in student loans?

by Glinka

Soon to be naive about buying graduation time

Q: I am a full-time students, during which this year also. My plans have to wait for completion of the process of buying a house six months after the commencement of work. How will my student loan affect the ability of the mortgage?

I hope that $ 100,000 in student loans. It should have already begun to pay these loans, which are trying for a mortgage.

: Like many students who graduate with the fact that the mortgage on their training. In fact, many people who have large mortgages!

Monthly payment of their loans (the so-called "debt service") is the amount that can be used to pay the mortgage, taxes, internal and total debts.

Creditors typically you can have up to 28 per cent of the total gross monthly income on mortgage, taxes and insurance payments from the owner. They are capable of up to 36 percent of your monthly gross income from their total debt. If you have an FHA loan (as opposed to the conventional loan), you can have your debt income rose slightly.

It is possible that the monthly payments of student loans, you may not be able to buy anything until you have paid for these loans significantly. If your income is high enough, you can buy, even if you begin repayment.

I am confident on the road: do not even go home, yet you do not know how this is done, and that the sting of debt, monthly income. And remember - if you have 43 percent of your gross monthly income on mortgage, taxes, insurance and student loans, can eat up to 65 per cent of its budget to pay so little else in your life.

To obtain additional information for calculating these costs, please read my book "100 Questions Every First time home buyer, you should" (3rd edition) to help you get started (in most local libraries).

Question: In March, we have a son to buy a house. He makes monthly mortgage payments. But a letter in our name. One of us can not claim mortgage interest for the year 2008? His experience in this matter would be very grateful.

If your name is in writing, and his name is on the mortgage, I would have gains and losses, it is possible. What we do (if they are not in writing or in the name of the mortgage) to pay you rent, you only pay for a mortgage for you. This is not good for the credit, not good for long-term financial planning.

I am not sure that you and your husband are expected to enter into this Agreement, except that his son moved to another location. I hope that this scheme for all. Please talk to your accountant or tax preparation for more detailed information.

Q: My wife and I bought our second home in Wisconsin for $ 320000 in 1991. My wife died last year. The house was estimated at 1.5 million dollars. How do I calculate my taxes on the profit on the sale this year?

: In the second sale of the house, you will be with long-term capital gains. You can calculate by dividing the sales price and deducting the cost of buying and selling real estate, after deducting the cost of major repairs (without finishing) or structural additions to the property for many years.

Suppose that, after deducting the cost of sales, net of 1.3 million dollars. If you have $ 320,000 to buy and another $ 250,000 for structural improvements in recent years, your earnings will be about $ 730000. In this figure, we need a federal tax of 15 per cent, as well as state taxes.

For further information, please talk to your accountant or tax preparation.

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