Now! You can determine what you can afford
Thursday Jan 12th, 2023
Buying a property, it could be as big as a mansion or a simple flat, is one of the most crucial financial decisions.
This brings happiness and joy to your life for years.
And your happiness is subjected to proper estimation of what you can truly afford. In other words, what suits your budget…
And you can’t afford to miscalculate.
We also suggest you not too completely rely on your real estate agent…
Better, sit with us and let’s do all the calculations together.
Here are 3 things to consider when ascertaining what you can afford based on your income:
1. Include your absolute month to month pay
Suppose you earn $3K and your partner earns $2K. Your gross income is $5K… May seem basic – but this would lay the foundation for more advanced calculations.
2. $1250 from $5000 to get home loan installment
It’s quite a simple, yet important calculation. You have to at least set aside $1250 from $5K.
Which is 25% of your monthly absolute income…
This sets the stage for actual calculation.
3. Utilize our Charissa Mortgage Calculator, adding a machine to decide your financial plan.
Staying with our case, $1250 is the amount you would pay… month by month…
With that, you could manage the cost of these alternatives on a 15-year fixed-rate contract:
$587,767 home with a 10% initial installment ($58,777)
$711,238 home with a 20% initial installment ($142,248)
$241,415 home with a 30% initial installment ($72,424)
$281,650 home with a 40% initial installment ($112,660)
Can you see how a simple calculation gives you an entire picture?
Sade Sanni, Broker of Record.