how much can I spend on a mortgage?

Answer 1

As much as you can afford.

Answer 2

To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - the actual number will vary based on factors such as your debt and credit history.

Mortgage lenders typically use the housing expense and debt-to-income ratios to more accurately determine how much you can afford to spend on your mortgage.

Housing Expense Ratio
Mortgage lenders recommend that your monthly mortgage payment should be less than or equal to a quarter of your monthly gross income. This percentage can change based on the type of mortgage you choose and sometimes the area in which you're looking to buy.
Debt-to-Income Ratio
You need to factor your other debts into determining an affordable monthly mortgage payment. Mortgage lenders look at whether your total debt is larger than 30-40% of your monthly gross income. Remember, debt is not just credit cards and student loans. It can also include alimony, child support, car loans, and housing expenses.
A mortgage lender, a housing counselor, or consumer credit counselor can help you better understand these guidelines. Before you talk to a financial professional, you can organize your financial picture by creating a budget [PDF 76K]. Don't forget that you also have to save for the down payment, closing costs, inspections costs, moving, and other related expenses.

Answer 3

This question is very vague.
The best I can tell you is that a bank will tell you what you are qualified for....but be careful they can have you mortgaged to the top of your chin. I think the rule of thumb is that 1/3 rd of your paycheck can go towards an annual amount for a mortgage.
Remember that owning a home adds may expenses like the cost for energy, insurance, maintenance, and taxes!

Answer 4

Your monthly mortgage payment shouldn't be more than 35 or 40 percent of your monthly take home pay. And I'm talking about a conventional fixed rate mortgage with equal payments.

Answer 5

it all depends on how much house you want to buy, how much salary you receive every month, how much you have for down payment, and or how much you are going to borrow and how much rate you are going to have.

If you will ask an honest realtor - they will give you a good faith estimate by prequalifying you first to know if you are ready to buy a property.

An honest loan officer will prequalify you one more time and you should ask for the good faith estimate - they would be able to tell you what part of the transaction gfe or good faith estimate is honestly available to you. Make sure you understand completely how to go about having a mortgage so that you will not be sorry later.

Answer 6

That depends on how much money you (and your spouse if you have one) make, other debt you may have, and what you are actually willing to spend for a house every month.
If you make $3200 a month, you can probably afford a mortgage of around $800-900, depending on what other debts you may be paying off.

Answer 7

Can't answer the question specifically because you don't say what your other bills are.

But here's a rough idea.Use your "take home pay" and deduct from it $100.00 for every credit card to which you owe any money. Deduct any actual car payments. From the balance take 22.5%. That is what you can afford.

Example: you bring home $3500/month.
You have 5 credit cards with balances, so deduct $500 from the $3500 take home, leaving $3000.
You have a car payment of $289 /month so deduct that, which will leave $2711.

Take 22.5% of $2711=$607.50

Anything else is very risky.

Answer 8

http://www.mortgage101.com/partner-scripts/1070.asp?p=mtg101&


Search for "mortgage affordability calculator" and use any of the ones that come up. These will give you a very good idea of how much you can afford to spend.

They also usually incorporate things you might not think of, like taxes and insurance.

Answer 9

Financial experts agree we should be living within 65% of our monthly income, and that we should have at least 6 months of living expenses saved up in some liquid savings plan.

You do the math.

Answer 10

Depends on what you make, it should not be more than 1/4 of your total income.

Answer 11

You should not spend more than 25% of your income on housing - and that includes insurance and utilities.