How To Determine How Much Home You Can Afford In Fort Lauderdale
The Blog on Trulia from Dan Green does a great job of explaining some of it but let me add some of my own commentary too.
He is 100% correct when he mentions interest rate fluctuations which is kind of funny because about an hour ago I got off the phone with a client and told them the maximum they can qualify for is $300,000 paying off a car but one of the big banks said they can go to $315,000 without that. I explained that we are really governed by the same guidelines it’s just I am more conservative when it comes to property taxes and insurance. I use what I feel the real numbers will be, not what we hope they will be along with taking into account a 1% higher of an interest rate.
I know you will hear some experts say you shouldn’t be above 28% or 31% or what have you on your mortgage payment but that is a generalization which is not correct and the correct answer is that it depends. Every borrower is different no matter how much alike some people think they are. This is where a true Mortgage Professional comes into play that will guide you and help you use your mortgage as a financial tool to building wealth.
Make sure you know as a buyer what you are qualified consists of and take all of that into consideration when looking at homes.