Can I afford a 3 bedroom house in Worcestershire with an income of £40k?
2007-12-17 06:07:52 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Gato is correct, just be sure you have ALL of those extra expenses figured in. If you rent, remember you'll have yard and house maintenance to do. You also may have other expenses, like a utility that was included in your rent, that now you pay for.
2007-12-17 06:19:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In the United States (and non-sub prime underwriting), the typical "guideline" is 28/36. In other words, you can afford a mortgage payment (principal / interest / insurance / taxes) of
28% of your Gross Monthly Income
and
Mortgage + all other payments could not exceed (comfortably)
36% of your Gross Monthly Income.
That has been the Fannie Mae bellweather of years but things like 30/40 are popular, too.
Don't bite off more than you can chew!!
2007-12-17 14:13:32 · answer #2 · answered by gato_del_sol_3 4 · 0⤊ 0⤋
In the US, we figure the monthly cost of the mortgage, and then we say that the monthly housing costs shouldn't be more than 35 percent of the monthly income.
2007-12-17 14:12:01 · answer #3 · answered by hottotrot1_usa 7 · 0⤊ 0⤋