Knowing what you can afford

Knowing how much you can afford for your mortgage is very important before you begin your home search.

Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income.  Also, your income debt and credit history go into determining how mcuh you can borrow.  As a general rule, your debt,credit card bills, car loans, housing expenses, alimony and child support should not be mroe than about 30-40 percent of your gross income.

Mike Stark

Mike Stark

Associate Broker
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