Whether you’re planning to buy a house or you’re selling your current home to move into a new one, figuring out how much you can spend on is vital to the moving process. In this blog entry, we’ll be going over some financial factors to take note of when it comes to paying and making payments for your new home.
The first factor to take note of is down payments. The larger a down payment you make on your house can reduce the amount of your initial loan, with some loan programs requiring a certain percentage of your home’s value to be made for the initial down payment. However, there are several low and no down payment loan programs available in some areas for qualified borrowers, so don’t hesitate to ask around. The second factor to take into consideration is monthly payments on your house. One paying percentage that most people tend to go for is anything below 28%. Many financial experts recommend for your monthly loan payments, including both car, credit card payments, and other such finances, should not exceed 36% of your gross monthly income. While it is possible to qualify for a home loan with higher percentages, the final decision on how much you are willing to pay monthly falls towards you. Take that time to talk to your financial advisor and go through which payment plans and percentages work best for you in the long run.
Understanding monthly costs, property taxes, and any additional fees when it comes to your home is one of many factors in homeownership, and Mortgages Done Right understands that better than anyone else. If you’re looking to take the next step in homeownership, whether it’s owning a new home or selling yours to move towards a bigger one, our team of expert mortgage brokers can help. Call us today to learn more about our services.