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Today we are talking about how much home you can actually afford right now in the Triad area. When people buy homes, they often don't realize the true cost of homeownership is a little higher than they were expecting. We want to let you know how much you should spend on a home each month.
A good, conservative rule of thumb is to budget about 25% of your income towards your actual mortgage payment. That's a good, conservative threshold. Now, your bank is going to qualify you for much more money, but it may not be in you or your family's best interest. You should figure your taxes and insurance into this cost.
Some other things that you shouldn't forget about when adding up your total payment include your homeowner's association dues, as they can add up quickly. Keeping your total monthly payment at or below 25% of your household income gives you the greatest possibility of staying in the game and not getting into financial difficulties.
One more thing we should mention is that you need to have at least 3 months worth of payments in an emergency fund, just in case something comes up. We all know Murphy's Law, right?
If you have any questions for us, or need help getting pre-qualified, we would love to help out. Give us a call or send us an email, and we'll talk to you soon!
