6/12/2023 0 Comments Business financial calculators![]() That's a maximum loan amount of roughly $253,379. Joe's total monthly mortgage payments - including principal, interest, taxes and insurance - shouldn't exceed $1,400 per month. $5,000 x 0.28 = $1,400 total monthly mortgage payment (PITI) That's a gross monthly income of $5,000 a month. Here's an example of what this looks like: Joe makes $60,000 a year. Many financial advisors believe that you should not spend more than 28 percent of your gross income on housing costs, such as rent or a mortgage payment, and that you should not spend more than 36 percent of your gross income on overall debt, including mortgage payments, credit cards, student loans, medical bills and the like. If you're not sure how much of your income should go toward housing,follow the tried-and-true 28/36 percent rule. Many borrowers put down as little as 3 percent. While 20 percent is thought of as the standard down payment, it's not required.
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