If you are about to buy your first house then one of the most important questions you should be thinking about is “how much mortgage can I afford?” This guide will help you decide upon a value and then you go on to live in the house of your dreams.
Factors to Consider
Annual Household Income
Apart from income your family earns per year you should also take any future changes you might be expecting into account because they will affect your ability to pay. You should not only ask yourself “how much mortgage can I afford?” but also the reliability of your source of income and whether or not you would still be able to pay the mortgage if it is no longer available.
The first thing you will have to is put the down payment on the house. This has to be paid in one go and is usually a large amount so it is one of the most important things to consider in “How much mortgage can I afford?”
If you want lower mortgage payments in order to fit the plan within your budget then you should probably choose mortgage with a longer amortization period. For those who think the answer to “How much mortgage can I afford?” is a larger mortgage payment and they want to save money in the long run should select a shorter amortization period.
People often overlook the closing costs when they are trying to figure out “How much mortgage can I afford?” These are part of the down payment costs.
There are many factors which add to the costs in “How much mortgage can I afford?” These expenses include property tax and homeowner’s insurance which we often forget about. The money that is required to pay off the mortgage every month includes home maintenance costs as well.
Buying a new home is a big decision and should be made carefully. When you start calculating “How much mortgage can I afford?” then also look at the houses that fit into this price range and you will be successful in finding the best deal within your budget.