2007-02-16 22:35:49 · 17 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The mortgage lender calculates how mch you can afford to borrow by what you earn
2007-02-16 22:38:32 · answer #1 · answered by leedsmikey 6 · 1⤊ 0⤋
Well, nothing, really.
But most people buy a house with borrowed money, in the form of a mortgage. How much money you can borrow depends entirely on how much you earn. So, how much you can afford to pay for a house depends on how much you have as a down payment and how much you want to and can borrow as a mortgage.
So how much you earn places an upper limit on what you can borrow, and therefore an upper limit on how much you can pay for a house.
2007-02-16 22:46:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Everything. You need to earn enough to be able to afford a house in a certain price range.
2007-02-17 00:15:18 · answer #3 · answered by KathyS 7 · 0⤊ 0⤋
The correlation is not direct. What you earn dictates how much you can borrow individually. National averages movements in earnings tend to influence house prices but they are only one of many influences, supply and demand being the greatest, followed by location dersireability.
2007-02-16 22:41:59 · answer #4 · answered by Finbarr D 4 · 0⤊ 0⤋
what u earn per annum
decides how much u can afford 2 spend
& how much u can afford 2 repay the mortgage company.
fixed-rate mortgages r being abandoned by lenders as they receive the least in interest.
some lenders r binding borrowers with a debt of 7 times their annul income.
it's a risk 4 the Borrower, as the Lender will seize the property if payments r not met.
2007-02-16 22:50:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Because if you earn more, you can afford to pay more for a house. If lots of people in one area earn more, they push prices for houses in that area upwards, because they're all offering more in order to secure the house.
2007-02-16 22:42:47 · answer #6 · answered by Anna 3 · 1⤊ 0⤋
The price of the property depends on your income. You are allowed to borrow up to three and a half times your annual income (over 25 years) Financial institutions have now started to lend money over longer periods recently due to house prices rising, this means that you may be able to borrow more.
2007-02-16 23:25:42 · answer #7 · answered by jojo65cat 2 · 0⤊ 0⤋
It is an indicator of your ability to repay the mortgage loan. At one time only the male partner in a relationship had his income assessed but increasingly it became both partners. This immoral practice makes the formation of the family tied to the financial needs of the couple and delays the birth of children.
2007-02-16 22:41:31 · answer #8 · answered by BARROWMAN 6 · 0⤊ 0⤋
I'm in the process of getting a house. They want to know if you can afford the house. If you have 3 time the monthly payment in your bank, you can afford it. If you can't save they see it you won't be able to afford the payment either. So you won't bother looking at you.
2007-02-17 01:57:36 · answer #9 · answered by Purple 1 · 0⤊ 0⤋
to work out your morgage you time your yearly wage by 3.5 this gives you the figure of the house you could be looking for for example if you earnt 30.000 a year you would be able to get a orgage of 105 thousand and so on
hope this helped
2007-02-16 22:40:24 · answer #10 · answered by Anonymous · 0⤊ 0⤋