Toledo Skyway Bridge

Toledo Skyway Bridge

Saturday, November 18, 2017

WYNTK about Financing a HOME

Thinking of buying a new home?  Before beginning your search start saving, budgeting and planning because it is helpful to know how much you can afford and what type of home you would like to purchase.  Traditionally lenders will allocate approximately 28% of your gross monthly income to housing expense.  Below are some links perhaps may help:

https://www.credit.com/loans/mortgage-questions/how-to-determine-your-monthly-housing-budget/

https://www.quicken.com/how-much-should-you-spend-rent-when-budgeting

Housing expenses include PITI- which stands for Principal, Interest, Taxes, and Insurance.  To get an idea of how much you can afford to pay each month for a house, multiply your gross monthly income by 28%. furthermore when coupled with outstanding loans the total for your debt service should not include 36% of your gross monthly income.  To increase purchasing power contact me at 419-261-0237 for a list of lenders that may be able lower interest rates with more liberal requirements.

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Hopefully your lender will take the guesswork out of applying for a loan by figuring out the amount you can afford to borrow.  Easily they can email you a print out of the maximum mortgage amount you qualify for.  This Preapproval will establish your price range and give you buying power by letting the seller know you have already been approved for the loan.


http://www.co.lucas.oh.us/DocumentCenter/View/55221

The above link will be helpful in understanding current tax laws in Lucas County.

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Mortgage interest, property taxes, and loan fees, or "points" are currently tax deductible. Points are generally deducted in the year paid.   A point equals 1% of the mortgage amount.   If you are in the 28% tax bracket, this is equivalent to receiving a 28% discount on your mortgage interest and property taxes.   During the first year f your mortgage the tax saving are especially high because most of your monthly payment goes towards your loan interest.

Some limitations may apply when closing costs are equated and today some lenders may offer mortgage with npo closing costs. When determining the out of pocket cash at closing taking into account your down payment and escrow accounts for  taxes and insurance should be considered.

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