How Can I Afford Mortgage Interest?
One of the biggest questions facing prospective homeowners is, “Can I Afford Mortgage Interest?” In order to qualify for mortgage loans, the interest is calculated as part of the payment, and a knowlegable broker will help you determine how much of a mortgage payment you can afford including things like interest and mortgage insurance.
Roughly, in order to determine the answer to the question Can I Afford Mortgage Interest, you should know what your gross income is. Since you will need this information to qualify for mortgage loan anyway, you can get an estimate of how much money you need to make to qualify for mortgage loans. Tipically, in order to qualify for mortgage loans, your total debt (including the house payment) must stay under approximately 40% of your gross income. This percentage is just a rule of thumb and there are exceptions to every rule.
One thing to remember when you are trying to determine how can I afford mortgage interest, is that the mortgage interest you pay on your primary residence is often tax deductible. That means that at the end of the year, the amount of mortgage interest you paid can be used to reduce the amount of income on which you have to pay taxes. While you do not want to place too large of a burden on yourself by trying to qualify for a mortgage loan that exceeds your ability to repay, these tax deductions can help.
One thing to remember when you go to qualify for mortgage lending is that the other debt you have can significantly affect your purchasing power, so it is wise to plan ahead before making a home purchase. By simply paying off some of your credit debt or holding on to that paid-off vehicle for one more year, you can easily increase your purchasing power and get more home for the money.
As well, the interest rate you pay on your mortgage is partially determined by your credit rating, so taking the time to improve your credit by reviewing your credit report, cleaning up your credit history, and consistently making on time payments of more than the minimum can also impact your ability to qualify for mortgage loans with lower interest rates.
Biography: Monica McKinney is a Mortgage Loan Strategist, licensed and certified in Real Estate and Mortgage Loan Brokering. Monica is also an Award Winning Writer and has just authored an exciting new mortgage approval guide, “Mortgage Approved!: Your Easy All-In-One Home Loan Kit, The ONLY Mortgage Approval Guide You’ll EVER Need”. This great approval guide book is filled with insider secrets, mortgage loan help and mortgage loan tools. Get more mortgage information from Monica. Click: Get Informed…Get A Mortgage