Nursing salary and buying a home?

Nurses General Nursing

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I start school for my BSN in the Summer of 2015 after I have my second child. I'm not picking nursing for the salary, I've always had a passion for nurses and what they do and couldn't see myself doing anything else with my life!

BUT I'm a planner, dreamer, and have big goals and like to know what I'll be able to expect after I become a nurse. So is it any way possible to have a $400,000, maybe even $500,000 home on a nurses salary? I want a new styled home that I'll be happy to live many many years in so I don't mind it being one of my biggest investments and I don't want to wait late in life for it since my kids will already be growing older by the time I start house searching! So having my house (and student loans) as one of my first financial priorities (we don't need brand new expensive cars) would I be able to afford to pay a $500,000 30 year mortgage?

Specializes in OR, Nursing Professional Development.
But that's accurate for the term your mortgage is locked in. Most mortgages need to be renewed after 5 years or so, at which point, interest rates may change.

Huh? I've had my current mortgage for well over 5 years, and have never heard of it needing to be "renewed". My interest rate can only change if I refinance- and I would only do that if it benefits me and not the mortgage company. Are you in the US?

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Specializes in Pedi.
But that's accurate for the term your mortgage is locked in. Most mortgages need to be renewed after 5 years or so, at which point, interest rates may change.

OP, keep in mind additional costs such as heat, hydro, land tax and repairs and upgrades.

My interest rate is fixed. It is fixed for the entire duration of the loan- 30 years. What you are referring to sounds like what we call an Adjustable Rate Mortgage (ARM). THOSE interest rates can change, fixed interest rates cannot.

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
But that's accurate for the term your mortgage is locked in. Most mortgages need to be renewed after 5 years or so, at which point, interest rates may change.

OP, keep in mind additional costs such as heat, hydro, land tax and repairs and upgrades.

If you have fixed rate mortgage it doesn't have to be renewed unless you refinance.
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Specializes in OR, Nursing Professional Development.
My interest rate is fixed. It is fixed for the entire duration of the loan- 30 years. What you are referring to sounds like what we call an Adjustable Rate Mortgage (ARM). THOSE interest rates can change, fixed interest rates cannot.

Or she is in Canada, where mortgages do renew: What is a Mortgage Renewal? | First Foundation

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
And this kind of confusion is why every high school student should be required to take a class on personal finance before graduating. So many young people have gotten themselves in deep doo doo because of a lack of knowledge.
Our school district does its a required "elective"
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Specializes in OR, Nursing Professional Development.
Our school district does its a required "elective"

More schools should be like yours. My school never offered such an elective, and let's just say that I learned my lesson the hard way. Fortunately, I was still living at home and able to save up the money to pay off my maxed out credit card and then turn my financial life around.

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
Ok. See I was confused because I took $500,000 divided by 360 months (that's how many months are in 30 years) and got about $1300 a month and by the nurse salary on indeed.com (which I now know is inaccurate) I would have been making that much per week, plus my husbands income, so I believed it was somehow doable. BUT I know nothing about home buying and wasn't sure about the nurses salary so I knew my numbers could possibly be way off. Thanks for the accurate information!
While you might be making that per week that is NOT what you bring home. 33% goes to the government. You must now contribute to a 401K per government regs. You will have to pay for insurance benefits for your family. Included in your payment are home owners insurance and taxes. All of the real estate sties that are reputable have mortgage calculators.

How Much House Can I Afford? Prequalifying for a mortgage

We are not trying to be harsh but we are trying to prevent you from making a costly mistake.

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While you might be making that per week that is NOT what you bring home. 33% goes to the government. You must now contribute to a 401K per government regs. You will have to pay for insurance benefits for your family. Included in your payment are home owners insurance and taxes. All of the real estate sties that are reputable have mortgage calculators.

How Much House Can I Afford? Prequalifying for a mortgage

We are not trying to be harsh but we are trying to prevent you from making a costly mistake.

I understand completely! That's why I opened this topic and everyone's advice is more then appreciated! You all are giving me a perspective I didn't consider and I will look into a first time homebuyers course! There is much I need to learn!

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Specializes in Pedi.
Or she is in Canada, where mortgages do renew: What is a Mortgage Renewal? | First Foundation

I know she's in Canada, that's why I said "we" (as in we in the US) call that an ARM and why I said on page 2 that "In the US" interest rates can only increase if you have an ARM.

For the most part, I like how Canada does things better than how the US does but I do not think I would like this.

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Specializes in critical care, ER,ICU, CVSURG, CCU.

you have been afforded, some very good advice......please do not get over your head :)

& hurry up, us older nurses need a break:cool:

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Specializes in Pedi.
While you might be making that per week that is NOT what you bring home. 33% goes to the government. You must now contribute to a 401K per government regs. You will have to pay for insurance benefits for your family. Included in your payment are home owners insurance and taxes. All of the real estate sties that are reputable have mortgage calculators.

How Much House Can I Afford? Prequalifying for a mortgage

We are not trying to be harsh but we are trying to prevent you from making a costly mistake.

I do not contribute to a 401K. The government does not require that everyone contribute to a 401K, but they say that an employer can essentially require its employees to participate as long as they give them the option to opt out:

IRS Approves Mandatory 401(k) Contributions, if Appropriate Notice is Provided to Plan Participants - FindLaw

When I worked in the hospital, they did this. We all got a letter in the mail saying "Beginning this year, all employees will be automatically enrolled in our 403B plan and 2% deducted from your check every pay period unless you opt out." In order to do that, you had to make an account with Fidelity and go and change your employee contribution to 0. No one has tried to make me do anything at my current job.

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Specializes in geriatrics.

Ok well that's it right there. Canadian mortgages are financed differently. Most you cannot lock in for the entire term.

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