HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $900,000 HOME?

@realmortgagementor

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SoundTikTok sound · Roxanne - Instrumental

Promoted product

E Mortgage Capital Inc.

Why it worked

The video addresses a common financial concern for potential homebuyers by providing a clear, step-by-step calculation for a significant purchase price. The use of on-screen text and a notepad visual aids in understanding the complex financial breakdown.

Summary

The video explains how to calculate the income needed to afford a $900,000 home. It breaks down the down payment, closing costs, and monthly payment, including mortgage insurance, to determine the qualifying income.

Structure

1Introduce the question of affording a $900,000 home
2Calculate down payment and closing costs
3Determine the total upfront cash needed
4Calculate the monthly payment (PITI + PMI)
5Determine the qualifying income based on debt-to-income ratio

Product placement

E Mortgage Capital Inc. (appears as a watermark and in the caption, does not act, removing it would not change what happens in the video)

Call to action

Send me a DM if you'd like me to run your scenario

On-screen text

HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $900,000 HOME? Let's dive

Original caption

How much do you need to make to afford a $900,000 home? - ##realestate##mortgage##mortgagetips##homebuyer##homeownership- E Mortgage Capital Inc. NMLS 1439141

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Transcript

How much do you need to make to afford a $900,000 home purchase? Let's dive in. All right, so let's start with our purchase price of $900,000 and we're going to run this as a conventional loan. I like 10% down at this level, so let's just bring in $90,000 to see how it swings. So we have $90,000 for our 10% down payment, closing costs estimated at $18,000. However, consult with your loan officer what your time going for the payment, closing costs. Assuming the seller doesn't cover it, which let's say they don't. You're coming in now with $108,000. There's still mortgage insurance. It's a lot lighter though because our down payment is higher and our credit score is good. So with a factor of 0.29% total payment including everything, $6,498 per month. It's very simple to figure out how much we need to qualify. Double this number. That puts us at a 50% debt to income ratio and conventional would be approved. So $12,996 month. This is how much money to be. Send me a DM if you'd like me to run your scenario.