Consumption and Real Estate
How do I calculate what I can afford for a mortgage?
Question : How do I calculate what I can afford for a mortgage?
My boyfriend and I are close to getting engaged, and I want to know how to calculate how much of a mortgage we can afford?
Is there any kind of online tool that we could put our salaries and expenses in to see how much we could pay?
mortgage tools
Best answer:
Answer by Bob D
combine your salary. minus- mortgage
rent space
water/garbage
food/week
gas (for work)
insurance/car
insurance/mobile home(yes you have to have that.its required)
good credit score maybe 600 should due (freecreditreport.com)
3% 5% down payment
go to realtor.com and look for one in your area.
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#2 written by Doctor Deth 1 year ago
most basic equation is house price should be no more than 2.5-3 times your combined gross salary.
monthly payment will have to be less than 40% of your monthly gross (mortgage calculators online)
you will need 10-20% of the house price in cash up front fro down payment,closing costs and inspections,appraisals, etc
pay down credit card debts to less than 30% of credit limits
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yes there are a ton of online tools you can use…just do a search in google for mortgage calculators.
Basically though, your mortgage payment, including taxes and insurance and any HOA or Mello Roos, cannot be more than 40% of your total income (gross). It depends on your credit too and the rate that you will be charged from the lender.
You can also find amazing deals in the foreclosure market like my wife and i did….