Ffr example: Equal to one year's salary one and a half or two years' etc.
2006-10-30 05:09:50 · 3 answers · asked by dude 4 in Social Science ➔ Economics
This is not the way it works. The value of the house is important, but so is the interest rate. The (somewhat flexible) rule of thumb is, the monthly mortgage payment (which is determined based on both the amount of the loan and the interest rate) should not exceed 30% of the couple's pre-tax income.
2006-10-30 10:34:00 · answer #1 · answered by NC 7 · 0⤊ 0⤋
http://www.motleyfool.com
There are plenty of calculators available for this, and it will give a fresh look at finance.
In general, banks will get pretty scared if your mortgage starts approaching 25% of your gross monthly mortgage. However, that figure varies based off whatever else you have going out, like: Car loans, Credit Cards, Student Loans, and the like.
2006-10-30 05:53:12 · answer #2 · answered by Manny 6 · 0⤊ 0⤋
I suggest going to www.bankrate.com. They have good calculators for your sort of question.
2006-10-30 05:11:58 · answer #3 · answered by ladyscott 3 · 0⤊ 0⤋