Calculating your home-buying budget: What’s your #?
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🏡 Ready to start your home search? First, let's talk about what you can afford. 🤔
Before you fall in love with a dream home, it’s super important to know your budget. Here's a simple breakdown to help you calculate your home-buying number:
1️⃣ The 28% Rule: Your mortgage payment (principal + interest) should be no more than 28% of your gross monthly income.
2️⃣ Debt Matters: Don’t forget about other monthly debt payments (like credit cards, car loans, student loans). Lenders prefer your total debt to stay under 36% of your monthly income.
3️⃣ Do the Math: Let’s say you make $6,000/month. Your max mortgage payment would be around $1,680, and your total monthly debt payments can’t exceed $2,160. If you have $650 in debt (like a car payment and credit cards), your mortgage budget would be $1,510 ($2,160 - $650).
These numbers can give you a great idea of what you can comfortably afford. Want to talk about your budget and next steps? I’m here to help — just DM me! 💬
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