Friday, March 1, 2013

Los Angeles Homebuyer Mortgage Affordability Calculator



First Time Homebuyer, Moving Up to a Bigger Home, Consolidating you Credit, Refinancing for a Home Remodel - See if You Can Afford the New Mortgage

We assist people in evaluating their options for home buying in Los Angeles, including FHA loans and traditional loans. We have a free calculator on our website that you can use to find out how much of a mortgage you will qualify for.

In some ways determining the amount that you can afford to pay for a new home may seem simple. 


You figure out your net income after taxes, and subtract all of your other payments and expenses other than housing. The answer you get is how much per month you can afford for your new home. You would be right, of course, but it isn't quite that simple.

First of all, lenders have standards that you must meet in order to get a mortgage from them. These standards vary from company to company, but generally, the total mortgage payment plus property tax plus homeowners insurance AND any association dues, should not exceed 28% of your net income.

The other thing you must add is all other monthly debt payments you have (school, car, credit, etc.). Add this total to the total of your cost of home ownership that you calculated previously. The total should not exceed 40% of your net income.

FREE Home Mortgage Loan Consultation Available 

The calculator will give you part of the story.  But a few minutes on the phone with me will fill out the rest.  I have helped hundreds of families through the mortgage process, and I have resources that might make it possible for you to reduce payments or interest, move in with a small down payment, or even get a loan with proof of income.  The consultation is completely free and carries no obligation. 


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