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How Much House Can I Afford Or Can I Afford a Home

Alexander Stern
 


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So you are in a serious thinking about buying your own house or maybe buying another one instead of what you have now? I kinda wonder - you are married and your wife or your husband want that and you need to understand what this is about, right? Kidding!

Anyway, there is no magic and certain amount of dollars you can be searching here regarding the home you really want to have. “How much house can I afford?" The answer to this is based on many factors, including your location, income, savings, personal preferences, and most importantly, the house-buying plan you have in place.

In the most ideal case you could buy a house by putting down 100% of it. Sounds fantastic, doesn't it?! But think how much fun and pleasure that could really be! Don't borrow money. Don't enter debts. Don't become bound to hard work forever to pay it back. Wonderful!

Anyway, although if that kind of amount is too high a shot, I strongly suggest you save a down payment of 20% or even more, choose a 15-year (or less) fixed-rate mortgage, and also limit your monthly payment for the mortgage to 25% or less of your monthly income.

Only then you can comfortably enter the house and not struggle every day to keep with all the payments and debts that keep coming. After all, you want your new home to be a blessing, not a curse. Don't forget that after entering a new house, everyone would really want to make is as comfortable as possible, buy all the nice things to feel that they own it, you know.

So, if you buy a house with nothing down and a astronomic monthly mortgage payment, you're actually inviting Mr Murphy to move into the spare bedroom. You know - all the things that you really didn't want to happen start dropping on your head and exploding in your face. So, you do NOT want that loathsome Murphy as your house mate - please, believe me!

Here's a quick checklist of the most fundamental questions to think over seriously if you truly think over how much house you can realistically and comfortably afford. If you cannot sincerely answer YES to most of these questions with that house image you have in your mind, then it would not be a wise decision to buy it right now.

  • Can I give as a down payment at least a 10% and preferably 20% of the house price?
  • Can I make sure those mortgage payments would be at or below 25% of my monthly household gross income?
  • Am I in place personally and as a family to bear a 15-year fixed-rate loan?

One last thing - please, take my suggestion below to make sure you are just not one of those newbie naive loan shoppers who are exactly the type that any mortgage lenders are looking for to make their best profits on. Make your homework and read all the necessary books and recommendations before jumping into 15 year mortgage loan, will you?

Do you know that the “system" is stacked against you and it is staggering that most people don't know how to shop for a mortgage! If you want a mortgage with the lowest rate and for the lowest points and fees get you own copy of The TEN Dirty Little Secrets of Mortgage Financing

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