MortgageGirl Answers Frequently Asked Questions (Fall 2017)

Do you have mortgage questions? The MortgageGirl can answer today’s most commonly asked questions

How much does the “Bank” say I can afford?

For the answer, know your taxable income along with the amount of any debt outstanding along with the minimum monthly payments. Assuming it is your principal residence you are purchasing, calculate 35% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included. Make sure to include the one-time high ratio insurance premium onto the mortgage amount. Then, calculate 42-44% of your taxable income and deduct all monthly debt payments, including car loans, credit cards and lines of credit payments. The lesser of the first or second calculation will be used to help determine how much of your income can be used towards housing costs including your mortgage payment. ***…