debt to income: How Much House Can I Afford? - 12/07/07 11:04 PM
How Much House Can I Afford?
Mortgage lenders are chiefly concerned with your ability to repay the mortgage. To determine if you qualify for a loan, they will consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment. So how much house can you afford? To know that, you need to understand a concept called "debt-to-income ratios."
Debt-to-income ratiosThe standard debt-to-income ratios are The housing expense, or front-end ratio and the total debt-to-income, or back-end ratio.
ExampleTake a home buyer who makes $40,000 a year. The maximum amount for monthly mortgage-related payments … (2 comments)

 

Shelby Morris

Columbia, TN

More about me…

Realty Exchange

Office Phone: (931) 381-9801

Cell Phone: (931) 374-8603

Email Me



Links

Archives

RSS 2.0 Feed for this blog