HOW MUCH HOME CAN I AFFORD?  Maybe more than you would think.

For most buyers, particularly first-time home buyers, their greatest concern is affordability. Current homeowners looking to upgrade fear they are spending beyond their means. While the general rule of thumb is that a buyer should spend no more than 28 percent of their income on housing costs, most experts suggest people may be surprised by how much they can afford. Renters wonder how long it will take to save enough to afford a home. The same 28 percent rule applies here as well. However, there may be tax advantages available to homeowners and renters do not see that benefit. Another rule of thumb that renters should consider is the equal-money rule. As a homeowner, these tax benefits could be equivalent to an additional one third of their monthly rent payment. Example: Current rent is $800 per month. An equal money housing payment for ownership after annual tax benefit could be $1065 per month. (Seek professional tax advice for your personal situation)

There are countless financing options available to help more buyers purchase a home than ever before. But while there may be more mortgage products available, few lenders are willing to grant a loan to a buyer they feel is overspending. If you qualify for a loan, you should feel comfortable that you can afford a home within that price range. Most importantly, while there is always some risk involved, placing your money into your house is often a wise and practical investment.

I would be happy to set up an appointment to review your financial conditions and help you determine an affordable price range based on your needs. To learn more about how I can assist you in your home buying needs, please feel free to contact me.

 
Live Chat

Want the latest DETAILED STATISTICS for your Neighborhood? Just ask, I’ll send them!

If you've found this useful, please consider me for your REALTOR®.
Contact me or add me to your Address Book today.

 


THIS IS AN ADVERTISEMENT