Rule of Thumb when Purchasing a Home

As a general rule, the total monthly cost of your mortgage payment, property taxes, and insurance should not exceed more than 28% of your pre-tax income, and your combined monthly payments across all your outstanding debt should not exceed more than 36% of your pre-tax income. By staying within this range, you give yourself the best chance of mortgage approval. You can use our new-house calculatorto estimate how much house you can afford.

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