How Much Home You Can Afford?
Credit Unions have a big advantage over banks when it comes to purchasing a new or refinancing your existing home. Some of these benefits include no intangible taxes, typically lower fees and interest rates – which can save you a lot over the course of your loan! With these huge benefits and historically low interest rates, there has never been a better time to finance a Mortgage with your Credit Union. But now the most important question, how do you determine how much home you can afford?
Set Realistic Expectations
It’s easy for expectations to get out of hand when dreaming on Zillow.com, but you need to keep a level head on what makes sense financially. Start by checking your credit score to ensure you get the best interest rate available.
Consider the Total Cost of Buying a Home
There is so much more that goes into the total cost of buying a home than just a mortgage payment. Talk to one of our Mortgage Experts to understand all the aspects that make up your new mortgage payment.
Stick between 40% to 45% of Your Gross Income
To be financially smart you want your total debt payments to be 40% – 45% of your gross monthly income. For example, if your Gross Monthly Income is $5,000 then multiply that by 40% – 45% to calculate a payment you can afford.
Example: $5,000 x .40 = $2,000
This result would be the ideal maximum amount of debt you can have with your new mortgage payment.
Calculate Monthly Expenses
Our Mortgage Experts will add your Car Loan payment, Student Loan payment and your minimum Credit Card payment to determine the best mortgage plan for you financially.
Start Saving Today!
We are here to help you hit your financial goals! Open an extra Savings or Club Account to start saving for your mortgage down payment or the closing costs when refinancing.