HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $2,550,000 HOME? 🏡💰

@realmortgagementor

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Promoted product

E Mortgage Capital Inc.

Why it worked

The video provides a clear, step-by-step breakdown of the financial requirements for purchasing a high-value home, using relatable numbers and a practical "house poor" metric to resonate with viewers seeking financial advice.

Summary

The video explains the income required to afford a $2,550,000 home, detailing down payment, closing costs, and monthly PITI payments. It highlights that a minimum of $31,600 monthly take-home pay is needed to qualify, but suggests a more comfortable income of $39,500 to avoid being house poor.

Structure

1Introduction of home price and goal
2Calculating down payment and closing costs
3Determining total cash to close
4Calculating monthly PITI payment
5Calculating minimum qualifying income (50% DTI)
6Calculating recommended income for comfort (60% DTI)
7Call to action for personalized scenario

Product placement

Original caption

How much do you need to make to afford a $2,550,000 home? - ##realestate##mortgage##mortgagetips##homebuyer##homeownership- E Mortgage Capital Inc. NMLS 1439141

More from @realmortgagementor

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 $2,550,000 HOME? 🏡💰

Transcript

Here's how much you need to make to afford a $2,550,000 home purchase. So we are at 2,550,000 as far as purchase, which means we are in jumbo territory. So, that means we have to be bringing in our 20% down at this level, which is going to be a minimum of $510,000 down payment and for closing costs, this is always going to vary based on state, county, time of closing. I just put in $38,000 about the average of the nation. So if the seller is not covering, you're far as closing costs, that means you will have to be bringing in $548,000 cash to close. Now for the payment, we do have to do our PITI - principal, interest, taxes, altogether for qualifying. Even insurance separately. And out the door, I have this at $15,800 on the nose, total monthly payment. Bare minimum to qualify, multiply by two. This is going to hit us right at a 50% debt to income ratio, which is the maximum any wholesale channel is going to go up to. That means take home pay needs to be $31,600 to qualify. But if you want to avoid becoming house poor, do this instead. Multiply the same monthly payment by two and a half. So this puts us at $39,500. This is really where we should be as far as qualify for this monthly payment, avoid becoming house poor. Send me a DM if you'd like me to run your scenario.