 When you decide to purchase a new home, your first step should be to
determine how much you can afford to spend. Of course, your mortgage
lender will ultimately assess the amount you're eligible to borrow.
Therefore, you need to target an appropriate price range before you
begin house hunting.I work with
several local mortgage lenders. Call or email me and I will send you a
current list. They can assist you at no cost to see exactly how much you
can afford. There are many different mortgage programs available
including those with no money down.
To get an estimated figure, look at
your monthly budget and estimate how much you're willing and able to set
aside for your mortgage payment each month. You should also consider how
your monthly mortgage payment will relate to your total monthly income.
Generally, your total housing expense
should not exceed 28% of gross monthly income (FHA is 29%, VA is N/A).
Your total housing expense is the sum of principle, interest, and
escrows. Also, total monthly obligations should not be greater than 36%
of gross monthly income (FHA and VA are 41%). Monthly obligations
include total housing expense plus payments on installment loans
revolving credit payments, mortgage payments on real estate that doesn't
produce income, and alimony and child support payments.
Calculators
There are many loan programs available
ranging from NO DOWN PAYMENT to as little as 3% down. The following
mortgage calculator will allow you to estimate monthly payments and
total interest for different price range homes.
Compute your monthly loan payment and
total interest for a fixed term loan. Choose from the mortgage payment
calculator or the prequalification calculator.
30 year loan has 360 total payments
15 year loan has 180 total payments
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These calculators are intended for
informational purposes only. Whether you would like to buy a
$50,000 or a $500,000 home, I would like to help. I can be
reached at (256) 508-0211 or
email. |
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