The cost of owning a home is not just the cost of the home loan itself. If you are thinking about purchasing a home, there are many factors to consider when asking yourself how much you can afford to spend.
The following expenses are factored into the cost of owning a home:
-Your annual income
-The amount you have saved for a downpayment
-Outstanding monthly debt (other than a mortgage payment or rent for your current residence)
-Annual property taxes -Homeowner’s Insurance
-Utilities -Cost of home repairs & maintenance
-Expected interest rate
-Cost of mortgage insurance
As you can see, the amount you can afford to borrow for a home loan is not just the cost of the monthly mortgage payment; it includes many monthly, annual and variable costs that quickly add up. Consult with your loan officer to determine how much you can afford to borrow while still able to afford your other financial obligations and save for your financial future.