Saturday, 10 August 2019

How Much Mortgage Can I Afford? Mortgage Calculator

How Much Mortgage Can I Afford? Mortgage Calculator

I want to talk to you about how much mortgage can I afford. People are constantly trying yo figure this out and they don't really generally want to talk to a lender off the bat, they want to figure out themselves. So I am going to give you a quick and easy way to figure out the basics.

Let get started

  • Less Than 25% Of Your Income Should go toward Your Mortgage

There are 2 different ways to look at this.

If you listen to what people like Dave Ramsey or Suze Orman. They are going to urge you to have a housing payment that is less than 25% of your gross income. Your gross income is the amount you make before taxes. That is before 
  • Federal
  • States
  • Social Security
  • Medicare
  • Healthcare

  • For instance, you make $7000 a month, 25% of that would be $1750, to be financially conservative you want your mortgage payment to be less than $1750 a month, to calculate your mortgage read the article below

Read: Best Formula For Calculating Monthly Mortgage Payments?

Mortgage Calculate

25% of your gross income is not always realistic, so there are certain areas in the country where the cost of living is so high. It would be great if you could do if for 25%. 

All you have to do is you are going to take your gross income monthly, X - 0.3, to get what the conservation amount would be for your total monthly mortgage payment, that includes
  • Principal and interest
  • Taxes
  • Homeowners insurance
  • Mortgage insurance, if you are going to need it

That is what your house payment should fall into line.

Mortgage Loan

There is something lender called, "your back and ratio". This is your gross income versus your monthly mortgage payment, if you have diverged student loans there are special rules about those, they will hit you with the payment 9 out 10 times, so you really want to make sure you are talking to the originator.

Hope you find this helpful

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