How much do you pay for rent?
For anything that does not apply use $0
How much do you pay for cell services?
How much do you pay for home internet?
How much do you pay for electricity?
How much do you pay for Water?
How much do you pay for gas?
How much do you pay for oil?
How much is your montly payment on your car loan
How much is your montly payment on your car insurance
How much do you pay for a full tank of gas?
How many times a month do you get a full tank?
How much do you pay for an oil change
What is your salary for the year?
How much money goes into your bank account after taxes?
How much money are you saving as rent contengency monthly?
How much money are you saving for Murphy?
How much money are you putting in savings account?
Usually we are told to get a "preapproval" from the bank so we can figure out what we can afford. The bank will ask us about our finances and will generate a number that would let us know how much the bank is willinh to lend us for the purchase of our new home.
The problem is, we are not sure if what we are approved for is calculated wit our best interest and success in mind. It is usually found that after closing the mortgage, a lot of people find themselfs pinching pennies to make the mortgage payment at the end of the month.
We are going to calculate how much one can afford based on their disposable income.
What is the current interest rate offered by banks today?
What is the term of the loan?
years
What is the donwpayment percentage?
%
If you plan to make a large principal payment of more than $5000, you can request to have your payments re-amortized. This will keep your maturity date the same and lower your monthly payment.
The general advise is to have rent a 1/3 of your anual income. Let's se where that takes us economically.