Can I afford this home? This is a great question. Here we have provided a great mortgage calculator that will help you see the difference in you payments. You may leave the monthly tax and monthly insurance blank if unsure. Then is seconds you can know the difference in your loan amount. Remember to subtract your down payment amount. FHA loans are generally 3.5% down, VA loans are 0% and conventional are 10-20% with 20% the most common. There are other loans and loan programs, let us know and we can steer you in the right direction or simply go to the loan and mortgage page to select one of our great mortgage brokers or mortgage bankers.
There are a lot of different opinions on affording a home. Mortgage brokers will most likely look at credit and debt to income ratio. Another factor (common among property managers also) is payment to income ratio. They don't want to see more than 33% of your income to be higher than your payment. Of course with the big jump of 2005-2007 the lenders were not necessarily following these rules. In fact some joke that if you had a pulse you got a loan. Unfortunately the banks have countered this with one extreme to the next and loans are tough to qualify for and there are not as many programs as there one was. Hopefully we will find a nice balance.
So we can’t tell you if you can afford this home, however here is a great loan and mortgage payment calculator to help you out!
