How much mortgage can I afford?

By
Real Estate Agent with Keller Williams Keystone Realty RS288420

Save yourself a lot of worry and wheel spinning. Just take some time to figure out just how much you Can afford to spend on a home.

Here are just a few basics one can do while sitting at the kitchen table...

As a rule of thumb a lender will want to see your mortgage payment to equal no more then 29% of your u GROSS income. This this money you make before anything is deducted from the check.

Then you need to consider the currant loan interest rate.. In today market about 6 to 6-5 % is a good figure to work with.

Of course the lower the interest the more home you can afford.

 

OK lets say you make 60,000 gross pay a year. you take $60,000 x 29%  is..174000

Now divide this by 12 months..1,450 now lets say if you add on interest 6% that comes to $ 87.00.

This means to me you should try to find a home that Will run you about 1,000 to 1,100 a month. this way your pmi..( private mortgage insurance) and your interest and taxes will all fit into the 29% of your pay.

 

I know this is a lot to grasp. But get out the calculator and pay around with the figures.

It pays to be smart and know the odds before taking on a mortgage.....

Posted by

Sharon J Harris Realtor

Keller Williams Keystone Realty

225 Baltimore Street

Gettysburg, Pa 17325

717 465 0661( cell) 717 334 4565

movewithsharon@gmail.com

www.cbsp.com/sharris

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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Sharon - The most important thing folks must consider is at the end of the day, are they comfortable with their payment?  Will it max out their pocket book where as they will live month to month struggling to afford their expenses?  What lenders tell may say you can afford on paper, may not be a payment you are comfortable.  It's important to get this information out there.  Educate... educate... educate.

Nov 06, 2008 10:38 AM #1
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Paul S. Henderson, REALTORĀ®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Sharon, I think this is a great way to entice buyers and I noticed you included it in Localism, good job... I'm emailing you also...

 

Nov 13, 2008 03:14 AM #2
Rainmaker
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Sharon Harris
Keller Williams Keystone Realty - Hanover, PA
Realtor

Thank you Paul for pointing out my mis spelled words. How embarrassing. I must have been in a hurry, Thank You!!!!

Nov 13, 2008 11:22 AM #3
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Rainmaker
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Sharon Harris

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