Sunday, December 10, 2023 / by Tatiana Seidlin
Are you Buying a Home you can Confidently Afford?
ASKED.ANSWERED.SOLD.
Are you buying a home you can confidently afford?
Here are some guidelines to provide a starting point for answering the question... how much can I afford?
Most financial experts say housing expenses should be no more than 28% of your total pre-tax income. This includes your monthly P&I mortgage payment, homeowners insurance, property taxes, and PMI payments (if applicable).
For example, if your salary is $55,000 annually, your gross monthly income is $4,583 ($55,000 divided by 12). Your total housing costs (principal, interest, taxes, and insurance) shouldn’t exceed $1,283 per month (28% of $4,583).
Remember that total debt should be under 36% of your pre-tax income. This includes housing costs mentioned above and credit cards, car loans, personal loans, and student loans.
Hope this is helpful!
Tatiana Seidlin
KW Advisors | United Home Group
Realtor DRE:02109848
TatianaSeidlin@KW.com
(310)926-8543
