How Big A Mortgage Can I Afford?

Consider your monthly income is $3000 gross. Your total mortgage PMT taxes and insurance should be no more than 50 per cent; the lower, the better so you can live comfortably and always save for a rainy day.

Visit mortgagestar.com/strotter1 for financing options.

Well, that depends on one question. How much money do you have? Unless I know how much money you can spare, it would be difficult, no wait, impossible to tell you what kind of a mortgage loan you may be able to afford. Anyway, the mortgage loans differ from place to place, depending on various requirements.

What you can do is consult a financial planner about your mortgage requirements. The planner will need to know the information that you have not supplied here, such as how much you earn, what kind of house you want to buy etc. If you cannot afford to hire a professional, you will simply have to work out a mortgage plan for yourself and go scouting for a plan which would work out the cheapest and which would suit all your requirements.

As a prospective home-owner, it would be advisable for you to take into account four very important factors before you calculate how much mortgage you can afford to pay. Your ability (or inability) to repay the mortgage depends on how much your earn per year (that is, your annual income), how much you spend per year (that is, your annual expenditure), your lifestyle (this includes your current lifestyle and the extent to which you can change it) and your personality (which includes your attitude towards the repayment of the outstanding amount of your mortgage).

The amount of mortgage that you will have to pay the lender of the property is not only a basic mortgage amount, but it is also inclusive of the maintenance charges, the utilities, the association fees and furniture and décor expenses.