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Sunday, January 3, 2021

How Much House Can I Afford?

Having their own house is everyone's dream. A place where you can go home and have a relaxing time after days of hard work. You can build your own family and the children you are hoping for and treasure the memories. 

There are things to consider when planning to buy or build your dream house. How much House Can I Afford? Thinking of how much should you spend on the dream house you have been hoping for can be really stressful. 

So, you need to consider the amount of the house you want to buy, the amount of loan that can be granted for the house, the money you have saved in your bank account, the location where you want to have your dream house, and most especially the plans you have made ahead of this.

You also need to consider the mortgage rate in the market these days. There are some real estate companies that offer lower rates than other companies. Unsure of how much home you can afford? Use a free calculator to find out how big of a loan you can qualify for given your current monthly income and your monthly debt payments. Current local home loan rates are shown beneath the calculator.



MortgageCalculators.info was founded over a decade ago - way back in 2008 right as the subprime housing-led recession crashed the global economy - to offer free tools that help people figure out their mortgage payments. We offer some simple/fast at-a-glance tools to help people get a quick idea of their core mortgage payments, but our most popular page on the site is our advanced calculator which lets people see the full cost of ownership inclusive of PMI, HOA, insurance, and other costs of ownership.

We all know that some people can't pay in full so they have an option, to loan for their dream house.
Lenders estimate the ability of a borrower to repay their loan based upon factors like how much debt they carry along with what their monthly debt service costs are. This calculator uses a 28% front-end ratio (housing expenses versus income) & a 36% back-end ratio (monthly debt payments versus income), though you can adjust them to the limits set by your lender. 28/36 are historical mortgage industry standers that are considered ideal by lenders & are still used in some automated loan underwriting software programs, though lenders approve borrowers with higher DTI ratios. Click here for more information about DTI limits for all major loan types.

There will come a time that some people can no longer pay their mortgages. 
How to avoid foreclosure? 
The most important thing you can do when you’re having trouble paying your mortgage is taken control. In most cases, the worst thing you can do is nothing. Taking control means taking four steps: 
1. Make or take a call for help
Take control by accepting calls from your mortgage servicer. Even better, call your mortgage servicer as soon as you know you can’t make your monthly payment. The phone number is on your monthly bill. Tell your servicer why you can’t make your monthly payment and ask the servicer for help avoiding foreclosure. 
2. Ask for free expert help
Your servicer may be able to help if you get in trouble with your loan payments. If you can’t get what you need from your servicer, ask for expert help from housing counseling agencies near you. The counselors can develop a tailored plan of action and help you work with your mortgage company. Visit consumerfinance.gov/mortgagehelp or call (800) 569-4287 and enter your ZIP code, to find a HUD-approved housing counselor. 
3. Slam the scam
Scam artists try to take advantage of homeowners who get into trouble by charging lots of money— even thousands of dollars—for false promises of help. You should not have to pay anyone to help you avoid foreclosure. The help you need may be available at no cost to you from your servicer, or through a HUD-approved housing counseling agency. 
4. Apply for help
Your loan servicer must contact you, provide you with accurate information, and tell you about loss mitigation options you may be eligible for. Loss mitigation refers to the ways your servicer can work with you to avoid foreclosure. If you send in a complete application to your mortgage servicer early enough, your mortgage servicer has to tell you the options you have to keep your home, or if it makes more sense, to leave your home. Housing counselors have a lot of experience helping people work on avoiding foreclosure. They can assist you with the complicated steps to understand your options and apply for help.

Apart from that, be ready and be prepared when you plan to buy or build your own house, may it be luxury or just a simple home. But if you have enough money to buy a house, why not pay it in full for you not to have problems in the future. It may be hard however this will lessen the possible headaches you may experience in the future. This will give you a peaceful and stress-free life living in your dream house.

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