Investopedia advises that the principal, interest, taxes and insurance should not exceed 28% of your gross income.To know more
Are you ready to buy a house? These 5 questions can help you decide..
#4) What will be the amount of monthly income remaining after all your bills?
Everyone has heard the expression â€œhouse poor.â€ Make sure you will have enough money left over after all the bills are paid. Hereâ€™s a quick way to determine this. Take all your monthly liabilities (minus rent) and add an estimated mortgage payment. Then, divide this into your monthly income. Ideally, that number should be at or below 40%.
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