Loan

Aug 15 2017

Home Affordability Calculator – Find A Price Range #cheapest #car #loans

#home loan eligibility calculator
#

Determine Mortgage Eligibility With Our Home Affordability Calculator

How much home can I afford?

Additional Information

How Do You Find Suitable Homes in Your Price Range?

When you make the decision to buy a home, it’s as if blinders are lifting. As you drive to work, or the store or the gym, you notice all the realtor and FSBO (“For Sale by Owner”) signs that are all over town. The prices, the options, the floor plans and everything else can make you dizzy, so refine your wants and needs and what you can live without before you actually start looking. And this is NOT Valentine’s Day, so don’t fall in love with a particular house.

Be especially careful if you are working with a realtor, as they have a tendency to “up-sell” you into a house that you may love but can’t really afford. There’s nothing for them to lose by this endeavor, because the higher the house price, the more they make in commissions. Just remember–you will be the one paying the mortgage and the associated bills.

How Much House Can You Afford?

The idea of buying your first home can be intoxicating and intimidating at the same time. You are embarking on a journey down an unfamiliar road, so the first consideration is what you can afford to spend on a house.

Consider this from a couple of different angles:

  • How much of a monthly payment can I afford?
  • What savings do I have available for a down payment?
  • How do I plan to cover other expenses such as the earnest money deposit and closing costs?

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Setting Up House

The financial future of most people is dictated by the way they start out as independent adults. If you are going to set up house on your own or with a partner (or know someone who is), then you may find some good advice here.

Establish good financial habits early. They can save you lots of grief and money down the road. More couples break up over financial issues than for any other reason. Good financial habits will go a long way toward providing peace and harmony in your home. The key to developing good financial habits is a sound lifestyle financial plan that will help you achieve your lifestyle goals. Over time, your goals will change–that’s okay. A good financial plan will allow you to change your goals as you go along. But remember, they’re your goals. Many persons become discontented because they try to achieve someone else’s goals. You’ve heard the expression “keeping up with the Joneses.” This refers to trying to achieve someone else’s goals. Even if you succeed, you most likely won’t be happy. You will only be happy if you achieve your own goals.

Definitions

Current combined annual income

The gross annual income of you and your spouse (if applicable).

Monthly child support payments

The monthly amount paid for child support.

Monthly auto payments

The total monthly amount paid for automobile loans.

Monthly credit card payments

The total monthly amount paid toward credit cards.

Monthly association fees

The total monthly amount for association fees.

Other monthly obligations br em (not including current mortgage payment) /em

Any other monthly obigations.

Annual interest rate on new mortgage

Term of new mortgage

The number of years you wish to finance this home mortgage loan.

Funds available for a down payment

The amount of cash you have available to use as a down payment.

Estimated annual property taxes

The annual amount you expect to pay for property taxes.

Estimated annual homeowner’s insurance

The annual amount you expect to pay for hazard/homeowner’s insurance.

Also known as the debt ratio, lenders use this ratio along with the front-end ratio to determine the maximum loan amount. Debt ratio equals your combined monthly mortgage payment plus any other monthly debt obligations such as credit cards and alimony divided by your gross monthly income. Use a front-end ratio of 33% for conservative results and as high as 42% for aggressive results (usually requires a excellent credit and a higher down payment).

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