This is an easy way to calculate how much mortgage you can afford

When determining how much of a mortgage you can afford, there are a few things to take into consideration.

To get a loan, there are certain criteria requirements you must meet. As a general rule of thumb, you should be thinking about your current household income.

The next step is to consider the financial obligations you have on a monthly basis. This includes any loans, student loan payments and credit cards.

Have you saved any money for a down payment and closing costs? Finally, you must consider your credit. Is it in good shape or does it need a little work?

Even if you get into a loan with a high interest rate, there are options available that can help. The FHA streamlined loan is available for homeowners to help them with lower payments.

Under this program, the monthly payments are permanently lowered due to FHA streamline rates. This program is for individuals who have proven they are a good credit risk, and they avoid having to recalculate a debt-to-income ratio.

The best course of action is to obtain a loan that does not place too much of a strain on the finances The standard rule your expenses every month should not exceed 36%.

Lenders divide the estimated or current mortgage payment and other debt by your monthly gross income. As a homeowner, there are unexpected expenses that can occur at any time.

Even if you can afford the home, a lender will be looking for any instances that may put repaying your financial obligations at risk.