May 3 2016 12999 1

May 3 2016 12999 1

How Much House Can You Afford?


Methodology

To arrive at an "affordable" home price, we followed the guidelines of most lenders. In general, that means your total debt payments should be no more than 36% of your gross income.

Once you enter your monthly debt (including credit cards, student loan and car payments), we come up with a maximum monthly home payment you could handle while staying under that threshold.

Why do lenders use this guideline? It’s been shown to be a level of debt that most borrowers can comfortably repay.

That home payment assumes a 30-year mortgage at current rates, and includes 1% property tax and 0.4% for homeowners insurance.

It does not factor in private mortgage insurance, which you'll owe if your down payment is less than 20% of the purchase price. 

You should reduce the maximum target if you have other savings needs (such as retirement and college) or additional expenses (such as child care, private school tuition, health care, or alimony payments).


John and Ashley Lazosky Headshot
Author:
Phone: 702-281-1198
Dated: May 3rd 2016
Views: 217
About John and Ashley: We are the Broker/Owners of Vegas Homes and Fine Estates. We are proud to say we have a combined 22...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Jul 18 2017 12999 1 - If you’re organizing a do-it
Jul 5 2017 12999 1 - Summer Comfort & Energy TipsIt’s
Jun 13 2017 12999 1 - 6 QUESTIONS TO ASK FOR LOWER
May 30 2017 13377 1 - How To Stage Your Home For A Quick

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Vegas Homes and Fine Estates
1180 N Town Center Dr. Suite 100
Las Vegas, NV
702-522-1353
702-446-4536