Money Info: how much mortgage you can really afford?

14. Feb 2011 Mark Tibbits

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Banks, financial advisers, mortgage brokers and financial web sites to determine how much the mortgage people can afford to borrow relatively simple rules. Typical examples are for the purpose of calculating the maximum mortgage 2,5 times there are a couple of the total, or 3 times the primary income Plus the calculation of the maximum revenue for secondary or monthly repayment is to be a couple of monthly revenue by 30%, after the deduction of certain costs.

These rules are far too generic, the use of the help you have a lot of work, if both pay the mortgage and multi lifestyle you desire.

The maximum mortgage you can afford work in accordance with the instructions below. A much stronger position when you also have to talk about your bank, financial adviser, mortgage broker who arranges or other creditor. And can concentrate on the home hunting properties can actually afford!

Calculate how much mortgage you can really afford to

How much you're really just be calculated on the basis of the calculation of the reserve, the EUR, the following:

1. annual revenue
2. annual expenses
3. The largest annual mortgage
4. the maximum monthly mortgage payment
5. the maximum amount of the mortgage-

If you plan to buy a new home with a spouse or partner, don't forget to include both income and expenses.

1. for the purposes of calculating the annual income

For most people, it is easy to calculate ANNUAL INCOME, it is simply their 4(2)-(5) after taxes and other stoppages. Others have other sources of income to consider. These include, but are not limited to:

• second job income
• sales and other fees
• bonuses
• Hobby income or as a self-employed person

Remember that all sources of revenue, it is after taxes and stoppages, that you need to calculate what is available to spend.

2. for the purposes of calculating the annual costs

Even if you calculate the annual cost in the future, existing Bank and credit card statements are an excellent place to start. For the first time, buyers must be extended to cover also some new expenses such as real estate, but wil Stop paying others, such as rent.

Not realistic things: for example, if you are currently eating out three times per week, be careful about assuming, cut back to once a month!

Make sure that you include a large expenditure, but don't sweat trivia. Items to consider are:

• Food and beverages and other regular supermarket shopping
• the existing loans, including loans, student loans, car loans, and of course the cards
• charity contributions
• divorce Maintainance tools provided with fees
• car costs, including fuel, insurance, maintenance and taxes
• Other transportation, including taxis, buses, trams and levels
• The cost of the House, including real estate, insurance, heating and lighting, water and sewage, television, broadband, and mobile phones
• shoes and clothes
• mobile phones and other mobile devices
• downloaded music, books and other media
• insurance contracts, including life and medical
• leisure-time activities, including sport, eating out, film and theatre and concerts
• annual events, such as holidays, anniversaries, Christmas, Thanksgiving, and birthdays.
• other items purchased in cash, coffee and sandwiches, such as the score of meals, newspapers and magazines, and chocolate, and other snacks
• expenditure, which is a personal, such as your hobbies, or in support of children or other relatives

Also set aside an unexpected amount, call it contingency fund. For things such as, for example, the tires burst water pipes, replacement car or central heating boiler sähköikkunat or who is a 3D TV set.

3. for the purposes of calculating the maximum annual mortgage

This is easy. The largest annual mortgage calculator reduce costs annually, revenue each year.

4. for the purposes of calculating the maximum monthly mortgage payment

This is too easy. To calculate the maximum monthly mortgage payment is the largest annual mortgage for 12-to-peer file sharing.

5. for the purposes of calculating the maximum mortgage

The maximum mortgage you can lend to a variety of factors. These include, but are not limited to:

• how much down payment or deposit, either stored or accumulated equity exists in your home. Most of the products is the minimum down payment requirement is a fairly standard 20%
• the type of mortgage you plan to borrow. Most people choose fixed-rate mortgages and adjustable mortgages, also known as variable rate mortgage. Interest only mortgage are also available, but you must place, in order to ensure that the information you will be able to pay the mortgage off at the end of the term (or earlier)
• the mortgage term. Typically, in the short term, means a higher monthly repayment, and thus lower the mortgage for the same monthly payments

Most, if not all banks, mortgage brokers, mortgage lenders and others to provide mortgage calculators or similar to their website. It takes very little time to use them to work the maximum mortgage you can afford. You can also use comparison Web site, including, but not limited to MortgageLoan.com or Alexander Hall allows you to work most of the mortgage.

Now all you need is to find a budget for a dream home!

In practice, many people find that they are rikkidioksidipäästöjä their annual expenses, so that they adopt in the field they want to buy a home mortgage payments. Be careful Not to cut too much, you'll need to survive for many years with the consequences.

Disclaimer:

The information in this article is only indicative. It is recommended that you seek advice from an independent financial adviser before significant economic decisions, such as taking out a mortgage.

Copyright Mark Tibbits. Contact the creator of the republication permission.