Joseph Gaska 
Lovins Realty & Investment



"How much home can I afford?" is a question most home buyers ask.

While there are varying thoughts on this a common rule of thumb is that your monthly housing expenses should not total to more than 33% of your gross (i.e. before taxes) income. That includes your mortgage payment, property taxes, and home owners insurance. So take a third of your current income and use that as the maximum amount that you'll be able to afford.

"How much will my monthy payment be if I buy that house?" is the next frequently asked question by a prospective home buyer.

For the answer to that we'll need to use a calculator... or, more appropriately, the mortgage calculator that we have provided below. Enter the price of the house, the intended length of the mortgage, the current interest rate (estimated here for you), and (optionally) your property taxes and insurance costs. Once you've entered that information click on the button and we'll estimate your monthly payments for you.

Unless you are wealthy enough to pay cash for your home, you'll need to take out a mortgage - a loan that you obtain to close the gap between the cash you have for the down payment and the purchase price of the home you are buying.  The amount of the loan will be decided by the price of the home and your down payment.  Getting preapproved for a certain mortgage will allow you to know what price range your lender will approve and give you more buying strength.

Lenders factor in sales price and down payment, but place more importance on how much you can handle on a monthly basis.  The interest rate and the principle amount of the mortgage will determine the amount of your monthly payment.  The higher the interest rate, the higher the monthly payments.  Note that you must also add property taxes, home insurance costs, and, in some cases, home owner's association fees, to these figures for a complete, realistic monthly obligation.

For more information on mortgage financing, please contact me.







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