2006-07-28 06:25:16 · 7 answers · asked by Kwame Y 1 in Business & Finance ➔ Renting & Real Estate
There are all kinds of loan calculators out there. Most of them will get you into REAL BIG trouble.
If you take your gross annual income and multiply by 1.5 that will give you a realistic amount for a mortgage. Example: Gross annual income $40,000 x 1.5 = $60,000 mortgage. This will give you a payment that you can afford, and also leave you enough of your paycheck to pay your utilities, groceries, car insurance, etc.
If you follow the loan calculators, some of them will have you buying too much house. Many people are in foreclosure these days because they were over financed.
Other factors include how much you have for a down payment, your credit score (used to determine your interest rate), how much existing debt to income ratio, etc.
2006-07-28 08:08:41 · answer #1 · answered by Sharingan 6 · 0⤊ 0⤋
The ideal formula is 30% of Net income.
2006-07-28 13:29:17 · answer #2 · answered by ♥monamarie♥ 5 · 0⤊ 0⤋
They used to say that your mortgage should never be higher than a weeks paycheck, now that is impossible to do in most cases I believe they are going with 40% of your gross income.
2006-07-28 13:29:25 · answer #3 · answered by Badkitty 7 · 0⤊ 0⤋
I think 33% is the max. But usually somewhere between 25% - 33% is a good idea.
2006-07-28 13:28:45 · answer #4 · answered by jamie5987 4 · 0⤊ 0⤋
I don't understand what mortage and income ratio is, yet I would also like to know more about it? could somone email me aobut this?
2006-07-28 14:29:41 · answer #5 · answered by Suzy Suzee Sue 6 · 0⤊ 0⤋
Ideal for you? That would have to be nearly zero. Then your payment would be so small you wouldn't care. Sounds ideal to me!
2006-07-28 13:47:35 · answer #6 · answered by Stu 3 · 0⤊ 0⤋
this is no more 50% of your income go to your house payment
go to www.mymlc.com/a17989 and go http://www.mynlc.com/rtePage.aspx?lid=132 see if can .
2006-07-28 13:50:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋