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January
21

How much you can afford for a mortgage depends on many factors including how much money you have to put down, what type of loan you can get, how much your closing costs are and consideration of other expenses you need to cover.

Here's a few quick ways to estimate...

  • How much can you borrow? Most lenders want your housing expenses (mortgage, plus taxes and insurance) to remain under 28% of your gross income. Calculate 28% of your gross monthly income to see what amount you have each month for this.
  • How much cash do you have for a down payment? Wit ha conventional mortgage a buyer typically pays 20% of the purchase price up front. Most lenders will also let you put 10% down if you pay private mortgage insurance. Other types of loan programs may be available that allow for reduced down payment percentages. FHA loans can get down payments below 3%.
  • How much cost do you have for closing? You will need cash at closing (unless you have negotiated with the seller to pay your fees.) The cash you will need at closing is typically 2-3% of the total purchase price.

Money for Taxes and Insurance. It is also important to factor in how much taxes and insurance will cost for a given property. Typically your lender will add these amounts into your monthly payment.

Money for Additional Expenses. Keep in mind that you may need to reserve some money for repairs, remodeling, decorating, moving expenses, or life's emergency fund.

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 09/30/2022. The listing information on this page last changed on 09/30/2022. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of Southern Kentucky MLS (last updated Thu 09/29/2022 9:59:25 PM EST) or SCKY MLS (last updated Thu 09/29/2022 10:17:37 PM EST). Real estate listings held by brokerage firms other than Crye-Leike Executive Realty may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --

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