A monthly mortgage payment is composed of your monthly payment towards the principal amount of your loan, your monthly payment towards the interest owed on your loan, your property taxes, your homeowner's insurance, your private mortgage insurance (if applicable), any Homeowners Association fees (if applicable), and even home utilities.
With the above in mind, mortgage lenders will assess how much you can borrow based on your credit score, income and debt, and your savings. Interest rates will also impact this amount.
Our free Affordability Calculator helps to identify this amount and helps you build your budget from scratch. Just plug in your expenses below and see how much house you can afford.
The debt-to-income ratio is a way for lenders to assess how likely you are to be able to afford the payments associated with any debt you borrow. To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. According to the CFPB, evidence from studies of mortgage loans suggests that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43% percent debt-to-income ratio is a significant cut-off level for many types of mortgages, but you can still find mortgages that allow for debt-to-income ratios as high as 50-55%. You can calculate your debt-to-income ratio for free here.
The amount you can afford to spend on a house with an FHA loan is determined by a few factors. Our free Affordability Calculator helps to identify this by taking into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms, and type (FHA) also impact what you can afford.
Know your options: TPH Digital Mortgages Inc offers many non-traditional options that cater to borrowers who are self-employed or have variable income, and we also provide standard loan products including Conforming Conventional, Jumbo, VA, and FHA. You can choose any loan term you want whether it’s 30 years, 20 years, 15 years or Flex Term. You can learn more by talking to one of our advisors today.
The amount you can afford to spend on a house with a VA loan is determined by a few factors. TPH Digital Mortgages Inc offers many non-traditional options and we also provide standard loan products including Conforming Conventional, Jumbo, VA, and FHA. You can choose any loan term you want whether it’s 30 years, 20 years, 15 years or Flex Term. You can learn more by talking to one of our advisors today.
The factors that determine your buying power are unique to you and your situation. As outlined in the Affordability Calculator above, we take into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms and type also impact what you can afford.
The amount you can afford to spend on a house is determined by a few factors. Our free Affordability Calculator helps to identify this by taking into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms and type also impact what you can afford.
Based on your salary, we can easily determine how much house you can afford in just a few easy steps. Use our free Affordability Calculator above to enter your income, savings, credit score, dets, expenses, and location to get started!
The amount you can afford to spend on a house is determined by a few factors. Our free Affordability Calculator helps to identify this by taking into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms and type also impact what you can afford.
The amount you can afford to spend on a house is determined by a few factors. Our free Affordability Calculator helps to identify this by taking into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms and type also impact what you can afford.
The debt-to-income ratio is a way for lenders to assess how likely you are to be able to afford the payments associated with any debt you borrow. To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. According to the CFPB, evidence from studies of mortgage loans suggests that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43% percent debt-to-income ratio is a significant cut-off level for many types of mortgages, but you can still find mortgages that allow for debt-to-income ratios as high as 50-55%.
Closing costs refer to the costs and fees that the buyers and sellers pay to finalize a transaction. These can include HOA transfer fees, title insurance, recording fees - and more.
As a borrower, you’ll get a loan estimate before your loan goes into process so there are no surprises when finalizing your transaction.
A down payment is a sum of money you pay upfront at closing towards the home purchase, typically using your savings, gifts from relatives or other sources. It is a portion of the home’s purchase price that is not paid for using a loan.
Credit scores help determine whether you qualify for a mortgage loan, and if so, what interest rate the lender will charge you.The higher your credit score, the more house you are likely to be able to afford. Higher credit scores also open the door to a lower interest rate. The more the interest rate, the more you can afford to borrow.
Property taxes are paid monthly and are very localized. Towns use property taxes to pay for local government services, so each district employs them differently. The property taxes on two similar-sized houses can differ vastly based on a difference of just a few miles. Buying a home somewhere with lower property taxes can save you a lot of money in the long term. The assessed value of your home also affects the amount of property taxes you pay.
The annual percentage rate is a measure of the annual cost of borrowing money, it reflects the interest rate, fees, points, and other charges you pay to get a loan.
The factors that impact affordability are unique to your situation. As outlined in the Affordability Calculator above, we take into account your location, savings, income, credit score, debts, and expenses when working out your buying power. Interest rates, loan terms and type also impact what you can afford.
The 28/36 rule is in regards to conventional conforming mortgage approval (not government backed).
The basic concept is that you should only be spending 28% of your gross monthly income on housing expenses and only 36% on all debts combined (housing loan, car loan, other loans, credit card, child support, etc).
The 5 most affordable markets for homebuyers are as follows: