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
less 300/mth (annual 3600 taxes)
less 200/mth (est.monthly heat)
div by 5.25 (factor per thousand at ~4% on a 25 yr ammm.plan)
You should be qualified for ~$333,000 mortgage