How much home loan can you afford ?

How much home loan you can afford

After finding out how much down payment you can afford, you’ll need to get a feel for what kind of interest rates you could get on a home loan, as well as how much you can expect to pay in property taxes and insurance.

Once you get an idea of what those numbers would be in your area and with your credit standing, you can get a rough idea of what kind of mortgage you may be looking at.

Take a possible price for a home you may be considering. Subtract your down payment from that amount, and then add on the accumulation of interest, property taxes, and home insurance.

This is the principal amount you will need to borrow in order to purchase that home. Now you need to discover whether or not you’re eligible to borrow that amount, and if you can afford the payments it would require.

This entry was posted in Loan and tagged . Bookmark the permalink.