Home Buying in 24551>Question Details

Hhepler, Home Buyer in Forest, VA

how much of your income should go toward a mortgage payment?

Asked by Hhepler, Forest, VA Thu Aug 11, 2011

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0 votes Thank Flag Link Sat Sep 28, 2013
For an accurate answer, visit with any loan officer--lenders have their income v. debt criteria for qualifying for the amount of a mortgage—oftentimes requiring that housing costs are not in excess of one-third of gross income in addition to a stipulated income v. overall debt-ratio. What lenders don’t know are borrowers’ non-debt spending habits, present and anticipated. You, the borrower, need to consider the economic factors of your lifestyle that would impact on your individual comfort level of affordability. A mortgage outside your budgetary constraints can dramatically alter your overall living conditions. So, be sure to factor micro and macro economic concerns into your mortgage amount deliberations.
0 votes Thank Flag Link Mon Aug 15, 2011
This will answer both your post...depending on your income and your comfort zone you should be able to get a qualification from your local bank or your Realtor. They can help you understand the cash needed to closing including downpayment and break down of your monthly mortgage.

Good Luck
Ritu Desai
Associate Broker
Samson Properties
Web Reference: http://www.eNOVAhomes.com
0 votes Thank Flag Link Mon Aug 15, 2011
Below is an article my lender partner wrote regarding your question and speaks to other questions you should be considering as well. Good luck in your home search.

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 “house poor.” Make sure you will have enough money left over after all the bills are paid. Here’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%.

See link below for the full article.
0 votes Thank Flag Link Fri Aug 12, 2011
Rule of thumb is 31% of your GROSS income (not net), however, don't let that intimidate you, if you don't feel comfortable paying that much, then don't do it. Find a monthly payment that you think you can be comfortable with, then back into a purchase price and stick to your guns! If interest rates stay this low you will be able to buy plenty of 'house' with your money, believe me.
0 votes Thank Flag Link Thu Aug 11, 2011
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