How Much House Can I Afford? A Simple Guide
By Ellie McIntire, Luxury service in Central Maryland
(Ellicott City Clarksville Howard County Maryland Real Estate)
Buying a home is a big decision, and knowing how much you can afford is essential to avoid financial stress. Here’s an easy guide to help you set a budget and make a smart home purchase.1. Check Your FinancesBefore looking for a home, review your income, savings, and debt. Make sure your budget allows for a mortgage without overextending your finances.Try This: List your monthly expenses (rent, utilities, groceries, etc.) and subtract them from your income to see what you can afford for a mortgage.2. Follow the 28/36 RuleThis rule helps determine a safe home-buying budget: 28% Rule: Your total monthly home costs (mortgage, taxes, and insurance) should not exceed 28% of your gross income. 36% Rule: Your total debt (home, car, student loans, credit cards) should not exceed 36% of your gro...
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