HOW MUCH OF A MORTGAGE CAN I AFFORD?

How much of a mortgage can I afford?

 

 

Q……How much of a mortgage can I afford?
from Zoocasa ASK the PROS

A……. Robert Ede 

Quickly & assuming you have good credit and 5% down:

Take your Gross (ie pre-tax) Annual Family Income 

Divide it by 40

Answer is the monthly payment you can carry including 1/12 annual taxes and est. monthly heat.

Subtract an allowance for 1/12 taxes & heat

Divide new answer by 5.25 

= the # of thousands you can likely qualify to carry at 4% interest 25yr ammortization

EG 

$90,000yr /40 

=$2250/mth 

less 300/mth (annual 3600 taxes) 

less 200/mth (est.monthly heat) 

=1750 

div by 5.25 (factor per thousand at ~4% on a 25 yr ammm.plan) 

= 333

You should be qualified for ~$333,000 mortgage

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One thought on “HOW MUCH OF A MORTGAGE CAN I AFFORD?

  1. Pingback: 40+ “nobody ever explained it like that” Answers to Realty Questions (from my Nov 19/13 Post) —a revived tradition #UncleBobExplains | unclebobexplains

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