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How Much Mortgage You Can Afford In 100 k Income

To determine how much mortgage you can afford based on your 100k income is based on some serious steps which we discuss in these slides.for more details visit: http://beingarealtor.com/

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How Much Mortgage You Can Afford In 100 k Income

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  1. How Much Mortgage You Can Get With 100k Annual Salary

  2. Mortgage You Can Get With 100k Annual Salary To determine how much mortgage you can afford based on your 100k income – let’s call it to the 2x income rule.  Simply, you should only spend two times your annual gross income on a house.  

  3. How much mortgage can you afford based on your annual salary? • $25,000 a year salary = $50,000 Mortgage house • $50,000 a year salary = $100,000 Mortgage house • $100,000 a year salary = $200,000 Mortgage house • $200,000 a year salary = $400,000 Mortgage house • In addition to the 2x annual income rule, you should also try to pay 20% down and use a 15 year fixed loan.  Easy as that, right?  Of course not, but this will at least give you a guideline to think about.

  4. Calculate Interest by Appling Various Interest Rates

  5. Calculate Interest by Appling Various Interest Rates Remember, the mortgage amounts listed above don’t include all of the other housing expenses – insurance, property tax, etc. – which can increase the payment about 20-30% depending on where you live.   Also, you’d add your down payment amount on top of the total mortgage amount listed above.

  6. How Much More Affordable Housing Is With Low Interest Rates • how crappy it would’ve been to go through the early 80s when rates were in the high teens!  The 2x income rule for buying a house would probably have to go down to 1x! • The monthly mortgage payment ranges right around 30% of total monthly net income when using the 5% interest rate.   A 3% rate would take you closer to 25% of your monthly take home pay.  The 2x annual income rule keeps you in a pretty comfortable range where you won’t be overspending on the house.

  7. 2x Annual Income Rule That brings us to the next set of financial recommendations for how much house you can purchase.  Mortgage lenders typically use the 28/36 ratio rule to determine how much mortgage you can afford.  Basically, they look at your monthly gross income and want to keep you from spending more than 28% on the total monthly house payment – including insurance and property taxes

  8. For More Information Being A Realtor Visit: www.beingarealtor.com

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