Chapter 1

PRELIMINARY FINANCING HOW

MUCH HOME CAN YOU BUY?

Step 1:

Make a rough estimate of how much home you can afford based on your income and current debt.

Lenders and financial experts recommend that your monthly debts should be no more than 36% of your monthly income. (For a more conservative estimate, this should be based on your take home pay instead of your gross pay.)

If you have additional outstanding debts such as student loans or credit cards, you will need to factor in those monthly payments into your total monthly debt payment. An online mortgage calculator can help you determine your borrowing power at current mortgage rates based on your income and your current outstanding debt, and will likely be the best tool for you to make this initial estimate.

Annual

Salary

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

Monthly take Home Income

$4,167

$5,000

$5,833

$6,667

$7,500

$8,333

$9,167

$10,000

$10,833

$11,667

Monthly Debit

Payment

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

$3,300

$3,600

$3,900

$4,200

Keep in mind that these are guidelines. There are many other factors that determine how much a lender will approve you to borrow, and how much you personally feel that you're able to afford.

Page 1   Chapter 1

  Subscribe to Our Site

©2015 BY RE/MAX HARBOR COUNTRY@ New Buffalo VALERIE (VAL) BOMBERGER

Tel: 269.208.4750  valeriebomberger@remax.net  https://www:.valeriebombergermirealestate.com/

45 N. Whittaker, Suite #200 New Buffalo, MI 49117

The properties on this website are generated from the Broker reciprocity Program of the

MLS Exchange, Inc. All rights reserved.