It may sound silly and redundant to say but we all know that homes can be expensive. If you are a first time homeowner or in the process of selling your current home and upgrading to a different one, it is important to know how much of a budget you are working with.
There are a number of financial aspects to keep in mind. Two of the main factors are your down payment and the total monthly cost of your new mortgage. Although this may be common sense, remember that if you put down a bigger down payment, the amount of your loan in its entirety will be lower. (If a down payment is not something you can afford, there are some options available for either very low or no down payment.)
A very popular opinion as to how much you should spend on your home is that the total monthly cost of your mortgage should not be more than 28% of your monthly income, before tax. There are some experts out there who recommend lower or even higher – but this is a great goal to start at. There are many factors that equal out to the total monthly cost of your home. If you are not completely sure what your cost will be, ask your real estate agent or mortgage broker for help!
We are always here to help. We can help you figure out what you can afford, along with making you aware of all the different programs out there that are available to you.