How Much of My Monthly Income Should I Spend on A Mortgage?
Before you plan to spend the maximum amount you’ve been approved for, consider whether you can really afford the mortgage your lender offers. Here’s how to determine how much of a mortgage payment your budget can handle each month.
According to the latest data from Trulia, the median selling price for a home is $192,000. That’s far more than most of us could afford to pay in cash, and why most of us take out a mortgage. But don’t rely on a lender to tell you how much of your monthly income you can comfortably spend on your home. They may let you borrow the maximum possible amount, but that doesn’t mean you should — or must — take them up on the offer. Crunch your own numbers first to determine how much money you can put toward your mortgage each month before you start searching for homes for sale in Alexandria, VA, or Boston, MA.
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