The biggest mistake people make in buying a home is to buy a more expensive house than they can afford. This, of course, means that they will take out a bigger mortgage than they can afford. The mortgage payment on the house is the gauge of how expensive a house you can qualify for. A qualified loan is one where the total debt payments-to-total income ratio is no more than 43%. However, just because you qualify for a certain loan size does not mean you should buy the most expensive house you can. There are maintenance expenses on the house and other expenses you need to consider. Seriously review your household budget and include the mortgage payment and expenses. Then decide what monthly mortgage payment you are comfortable with. Do not forget to consider the tax savings on the mortgage interest in your budget.
Introduction
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Your First Big Job: How to Get It
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Flourishing in Your Job and Well-Being in Your Life
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The Importance of Behavioral Economics
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What is Money?
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Analyzing Your Current Financial Situation
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Budgets and Saving
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Credit Cards, Auto Loans, and Other Personal Debt
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Student Loans
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Understanding the Time Value of Money
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Banks and Financial Institutions
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Buying a Home
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Insurance: What Do You Need?
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Investing Fundamentals
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Investing in Mutual Funds
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Saving for Retirement
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Fiscal Policy and Monetary Policy-Government Intervention in Your Life
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