For the first time home buyers – As the mortgage you can afford?
A mortgage, especially the first, is an exciting step financial. As we have learned in recent years, but they are in trouble a lot when he can not afford a mortgage. In order to avoid foreclosure and ruin your credit, you must lose their jobs or other financial problems as you own the house, be careful about exactly how much mortgage you can afford.
Fortunately, it is easy to determine how much home you can afford, with the helpthree simple rules, the percentage of your monthly income to determine.
Rule # 1: his loan installment should not exceed 28 percent of monthly gross income.
Your monthly mortgage payment should not be a salary more than 28 percent of gross (before taxes) per month. For example, your partner and there should be a total annual income of 80,000 $, pay the mortgage, if not more than $ 1,866.
Rule No. 2:Your total housing payments (including loans, insurance, association fees and property taxes) should not exceed 32% of monthly gross income.
To obtain this line, add the cost of other accommodations, such as building insurance, property taxes and insurance for private guides (SMEs) on your mortgage payment. That amount is 32 percent not exceed pre-tax monthly income. This means that same couple earning $ 80kA years their totalMonthly housing payment can not exceed $ 2,133 per month.
Rule No. 3: The total debt payments (including credit cards, car payments or student loans) should not exceed 40 percent of monthly gross income.
Do you have credit card debt, student loans or a car payment if so be careful that your monthly debt payments plus your total monthly total housing no more than 40 percent of your gross monthlyIncome.
A simple way to determine what your mortgage loan.
interest rate you qualify for a mortgage today can do. However, you can estimate your budget. Assuming a 6% average rate on a fixed rate bond 30 years (the prices are lower now if you have a good credit), your mortgage payments are paid about $ 55 for every $ 10 000.
First, divide $ 1,866 (the maximum monthlyNumber of linking pay the mortgage on) for $ 55 and get 33.93.
Multiply by $ 33.93 and $ 339,300 received 10,000, the maximum amount of the loan.
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