This is one of the biggest questions that we get asked on a regular basis from not only our first time home buyers, but also from our previous clients who are looking to Move Up into a larger home.
Hi, I’m Diane McConaghy with RE/MAX Select Realty and the Diane McConaghy Team.
The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28% of your gross monthly income. So, that would be your income before taxes are taken out. For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. Pretty simple. However, you must keep in mind that your mortgage payment depends on your down payment, taxes, private mortgage insurance and many other factors.
If you’re watching this video and looking to purchase a new home, we are here to help guide you through the process every step of the way. Call, text, or email us or checkout our website at www.DianeMcConaghyTeam.com. You can also subscribe to the Diane McConaghy Team YouTube Channel for more videos about the home buying process.
Stay tuned next week for more home buyer tips.