| To determine how much you can afford, it is helpful to follow the guidance and key ratios lenders use:Housing Expense Ratio: Lenders recommend that your mortgage payment including principal, interest, taxes and mortgage insurance be less than 28 percent of your monthly gross income.Debt-to-Income Ratio: Lenders look to see that all your other debts like credit cards, student loans, alimony, child support, car loans and housing expenses are less than 30-40 percent of your monthly gross income.To get an idea of what your principle and interest payment would be based on the purchase price, fill in the mortgage calculator. |
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