Does anyone know how do you figure out the cost of a house you can afford? FI and I went looking preliminarily but are completely clueless.
csorisi
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Re: MORTGAGE AFFORDABILITY?
Usually a webpage w/ house listing will have the monthly mortgage payments needed depending on how much you put down.
amberbride
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Re: MORTGAGE AFFORDABILITY?
Right- but how do you figure out how much you can afford based on salary, car payments, student loan payments, etc?
csorisi
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Re: MORTGAGE AFFORDABILITY?
Oh i am sorry not sure it is usually a % of your salary--I am not sure what it but usually if you go to get preapproved for a mortgage I think they will tell you that. Sorry wish I knew more--me & FI are living in an apartment right now but will be looking for a house right after we are married.
m&m
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Re: MORTGAGE AFFORDABILITY?
I read somewhere that 28% of your gross combined income per month should cover your housing costs (mortgage, taxes, and insurance)...there was another percentage that should cover all of your debt payments. This calculator was helpful... Bank Rate Mortgage Calculator
Good luck!
NPbride
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Re: MORTGAGE AFFORDABILITY?
There's a mortgage calculator that I find pretty good on mlsli.com under financing section.
romameansamor
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Re: MORTGAGE AFFORDABILITY?
My fiance and I (on a whim - pushed by his mum) just applied for a mortgage and got APPROVED! I NEVER thought that would happen ESPECIALLY because I kept using those mortgage calculators online!
We were totally going to wait another year (great - one more year living w/ grandma) b/c we NEVER thought we could get one - but in one hour on the phone with Chase bank - I had all of our pre-approved papers in my hand!!
Don't give up and don't rely on the online mortgage calculators (remember- Long Island is a unique place!!). Go to the bank to get pre-approved!!
