I’m work at government agency that related to housing but I’m still noob about the housing. Reading from internet especially at RealEstate Yahoo bring me more perspective about housing.
An article called ‘How Much House Can I Afford ? ‘ is one article that really good to share.
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How Much House you can afford? This is the point
1. The Real Cost of a House
– You must know that the home down payment is around 10-20 percent from the value of the home. You need to have that money if the lenders not cover it. Lender also want insurance and you need to buy it.
2. How Much Can You Spend ?
– There are many things must do before buying a home. You need to know your monthly income you could spend.
Some lenders tend to say 28 percent from your annual income (based on regular).
3. Your Credit Rating
– You need to know your credit rating. It will impact your monthly mortgage payment. Mortgage are determined by your credit rating and will impacts both the monthly cost and overall cost of owning your own home. Small difference in your credit score will impact your interest rate.
4. Mortgage Calculator
– Using mortgage calculators to determine how your mortgage youl be. It will show monthly payment for the mortgage. Mortgage calculators value home, amount of mortgage, your credit score, loan term, property tax and interest rate. The calculator will provide to calculate how much a mortgage will cost you monthly.
It allows to determine whether or not you can afford a house.
How about this article? Do you think it is helpful for us to buy a house for our living? If this article is not enough try the book below :-