Rental Basics in 06066>Question Details

Debijc, Home Owner in 06066

how do I calculate what I should rent an apt. for?

Asked by Debijc, 06066 Tue Apr 17, 2012

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Carol Cavalieri’s answer
Generally you can consider one third of your gross income. If you want to consider buying a home, lenders will actually go a bit higher to qualify you for a mortgage. Interest rates are at record lows and the state of Connecticut has a great first time homebuyer program at 3.25% 30 year fixed rate mortgage that also comes with downpayment assistance. You can buy a nice home with 3 bedrooms and your choice of amenities (extra baths, garage, fireplace, etc) for less than $1000 a month (which would be your whole payment-town taxes, homeowner's insurance, the principal amount of the loan, and the interest).
If you would like to know more, please feel free to contact me! Carol
0 votes Thank Flag Link Tue Apr 17, 2012
A good general rule of thumb is no more than one third of your income. However, every person's monthly budget is different. If your income fluctuates, one third might be too much. If you have substantial fixed monthly debt payments such as student loans, credit cards, car loans or leases, etc. one third might also be too much. Also be sure to get a sense of what the monthly electricity/heat and any other fixed costs associated with renting any apartment. If you are moving to a new area and will be commuting to work, make sure you factor in any extra transportation costs that you don't have to pay now.

The most important thing is to try to keep the rent and all other associated costs that you don't have now low enough that you can still save for your future. Good luck.
0 votes Thank Flag Link Tue Apr 17, 2012
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