How Much House Can I Afford, Comfortably?

Finding out how much house you can qualify for is the first step. It could be even more important to determine your mortgage payment comfort level.

Source: How Much House Can I Afford, Comfortably? | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

I get asked this question a lot and it is certainly an import topic of conversation when considering a home purchase.

The author is correct – a better question for the borrower is “what am I comfortable paying”? The borrower (s) are the person (s) making the long-term financial commitment – they will suffer the consequences of taking on a payment that is too large.  Conversely, they will also realize the benefits of a mortgage for a real estate investment that appreciates in value.

If the borrowers are seeking traditional loans, the lender will use guidelines that put a limit on the amount that can be borrowed.  It is important to note that this limit does not mean it is the right amount to borrow for the new home owners.  Just because, a lender will satisfy Fannie & Freddie guidelines to gain approval for the loan does not mean you will be comfortable paying the monthly mortgage.

It is vital that you work within your budget, risk level, and seek an amount that will enable you to comfortably pay your mortgage.  Choose the right amount for you and stick to your budget

Happy House Hunting!

Mike
mnelson@equityprime.com
720.213.6260
@michaelfnelson2
Skype video: michasel.nelson2014
NMLS: 1314188
Licensed in CA & CO
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