If you want to pay cash, you can buy the house outright. It will be $1,000,000 plus closing costs.
If you want a mortgage, you will typically need to earn 1/3 the total mortgage amount. If it's a million dollar home, you'll put down 20%, and get a $800k mortgage. You'll need to make about $267/year for that mortgage.
You would want to put 20% down, and take out a loan for the rest. Having a mortgage payment, the interest is a tax deduction. The loan you get would be based on your income. On average you don't want you months payment to be more than what you earn in a week. Don't forget you will have taxes, and utilities to pay as well.
Either way but the taxes and insurance and upkeep are more than most of us want to pay. You would need a salary of about 250K to afford the home. If you pay cash you still need about 150K to live the lifestyle that goes with the house.
Thanks Simpson.Here is my question Simpson. I can afford to buy cash land 50,000.00.How do I get a builder and what is the cost to build a 5 bedroom home.Do I get a mortgage just to build how does that work in NY
It will depend on how much you earn, the cost of living where you live, and your own additional expenses. Just on cost of living, this calculator can help: http://bitly.com/Zd7rQO.
Can you save up a million dollars to buy a million dollar house or do you have to have a specific amount of salary to buy a million dollar house
