How Much House Can I Afford?
Posted by NewBuyer on December 12, 2009 | No Comments
A clear explanation of the 28/36 Ratio used by mortgage lenders to calculate how much home a potential buyer can afford. The housing ratio and the debt ratio are clearly spelled out and a real-life example is given. See if the house you want is worth the price by learning the importance of “property value.”
From the resource: “How much house can I afford? This depends on your down payment and your income. Bankers use a somewhat flexible formula, including payments and debts, to determine how much house you can afford. You can use that formula, too. It’s called the 28/36 Ratio (28% is called the Housing Ratio, 36% is called the Debt Ratio-See below for full explanation).”
Source: Consumer Credit Repair
Read More About Home Affordability at Newbuyer.com
Tags: mortgage approval
Filed Under: Home Buying
