How Much Home Can I Afford?
Gresham locals looking to buy a house need to know how much they can afford to pay each month towards mortgage payments. Before you even begin looking for a home, you should have a solid idea of how much you can comfortably pay each month towards your home loan. There are a number of particulars to consider in order to figure out how much home you can afford.
Stonebridge Mortgage Group is eager to help Gresham locals take steps towards homeownership. Gresham home buyers should consider the following in their home buying process: What percentage of your income can you afford to put towards monthly mortgage payments? Do you use gross monthly income or take-home pay? Does that percentage include property taxes, private mortgage insurance (PMI), or homeowners insurance? Stonebridge Mortgage Group can help you answer those questions.
Consider Total Housing Payment, Not Just Mortgage
When figuring out how much you can afford, there is more to consider than just the mortgage payment itself. Gresham home buyers should also calculate property taxes and all housing-related insurance – homeowner’s insurance and PMI – into their monthly costs. Calculate your numbers based on your pre-tax income.
What Percentage Of Income Should Be Dedicated To Monthly Housing Costs?
Depending on who you ask, there are a number of suggested percentages that you could consider for your monthly housing costs and mortgage. For Gresham home buyers who want to be conservative, putting no more than 25% of your monthly income towards your mortgage and other housing payments is wise. Some people will even go as high as 35% or 45%, with 35% being about average and 45% being on the higher end of things. How much you spend will depend on your needs.
Keep in mind that the more you spend on monthly housing costs, the less you’ll be able to save for other things. You want to be prepared for possible costs down the road. If you find yourself needing a new car, if you have kids, or if you find yourself temporarily unemployed, you may find that keeping up with paying 35% of your income is too much of a strain. The most important thing is to choose a percentage of payment that you can keep up with. After all, if you aren’t able to comfortably pay for your housing costs then you may wind up losing your home.
For advice on all mortgage matters, rely on Stonebridge Mortgage Group. We are eager to help you become a Gresham homeowner!
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to become a homeowner!
Call us today at 503.661.5580