HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $1,825,000 HOME? 🏡 💰

@realmortgagementor

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SoundTikTok sound · Roxanne - Instrumental

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+119.3K views over 13.3d · ~9.0K/day · 12 observations

Promoted product

E Mortgage Capital Inc.

Why it worked

The video addresses a high-interest topic (affording an expensive home) with clear, actionable financial calculations, providing practical advice on income requirements and avoiding financial strain.

Summary

The video explains the income required to afford a $1,825,000 home, detailing down payment, closing costs, and monthly payments. It also provides a method to estimate the necessary monthly income to avoid being "house poor."

Structure

1Introduction of the home price and goal
2Calculation of down payment and closing costs
3Total cash needed to close
4Calculation of monthly PITI payment
5Calculation of required monthly income based on jumbo loan guidelines
6Alternative calculation for preventing being "house poor"

Product placement

E Mortgage Capital Inc. (ACTS - it is the entity providing the mortgage advice and likely the service being promoted; removing it would change the context of the advice) NMLS 1439141 (APPEARS - it is a license number associated with E Mortgage Capital Inc. and does not change what happens in the video)

Original caption

How much do you need to make to afford a $1,825,000 home? - ##realestate##mortgage##mortgagetips##homebuyer##homeownership- E Mortgage Capital Inc. NMLS 1439141

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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 $1,825,000 HOME? 🏡 💰

Transcript

Here's how much you need to make to afford a $1.825 million home purchase. And we need every edge we can get to make sure our payment is as low as possible. This is going to be interest only. So at jumbo levels, we do have to bring in 20%. So $365,000 is going to be our down payment. And closing costs, I have this estimated at $36,000. However, this will vary based off of your purchase time, location, insurance, etc. etc. If the seller is not willing to help you out with these closing costs here, we total them together and get $401,000. This is our cash to close. Now for the payment, principal, interest, taxes, insurance. We're doing 20% down, so there's no mortgage insurance associated. And all up, based off of the average tax rate in the United States, I get $10,515 per month. Now to qualify for this payment, under jumbo guidelines, through wholesale channels, simply multiply it by two. Assuming no external debt, you have to be making $21,030 a month. But to prevent yourself from being house poor, there's a lot of different ways you can look at it. The simplest way would be multiply by two and a half instead. This brings us to $26,288 a month. This is how we'll prevent ourselves from being house poor a dime. Send me a DM if you'd like me to run your scenario.