| ShoalsArea.com |
|
|
|
|
||||||
|
|
|
|
|
| Click Photo to Search your Shoals Area Dream Home |
How Much Can You Afford?
Shopping for a home but not sure how much you can spend? Here's
how to figure out your price range. Qualification ratios are set by the
lender that state your housing expense to income, and housing
expense plus other debts to income, cannot exceed a specified
number. Many lenders use a 28% housing expense to income and a
36% housing expense plus debts to income. Other ratios may be
how much you put down on a home. It is important to remember that
these ratios may vary from lender to lender and each application is
handled on an individual basis.
Housing Expenses: Your montly housing costs include the mortgage
principle, interest, taxes and insurance often abreviated PITI.
Long-Term Debt
Any expenses that extend 11 months or more into the future, such as
car loans, are termed long-term debt.
When budgeting to buy a home, it is important to allow enough
money for additional expenses such as:
maintenance / utilities / homeowner’s insurance / property insurance
Published on January 25, 2007
Shopping for a home but not sure how much you can spend? Here's
how to figure out your price range. Qualification ratios are set by the
lender that state your housing expense to income, and housing
expense plus other debts to income, cannot exceed a specified
number. Many lenders use a 28% housing expense to income and a
36% housing expense plus debts to income. Other ratios may be
how much you put down on a home. It is important to remember that
these ratios may vary from lender to lender and each application is
handled on an individual basis.
Housing Expenses: Your montly housing costs include the mortgage
principle, interest, taxes and insurance often abreviated PITI.
- Generally speaking, to qualify for conventional loans,
housing expenses should not exceed 26% to 28% of your
gross monthly income. - For FHA loans, the ratio is 29% of gross monthly income.
Long-Term Debt
Any expenses that extend 11 months or more into the future, such as
car loans, are termed long-term debt.
- For conventional loans, total monthly costs, including PITI
and all other long- term debt, should equal no greater than
33% to 36% of your gross monthly income. - For FHA the ratio is 41%.
When budgeting to buy a home, it is important to allow enough
money for additional expenses such as:
maintenance / utilities / homeowner’s insurance / property insurance
Published on January 25, 2007
 |
| |
 |
| |
 |
| |
 |
