I am sure you would like to know how much loan you can access for a mortgage. The answer is different for everyone.
Income is only one small part of the mortgage equation.
When all things are considered, like your debt, down payment, interest rate, and the tenor, you might find you could borrow as much as 3 or 6times your salary/income for a mortgage. Or your budget could be smaller.
Some of the key factors that will be examined to determine the loan amount you are eligible for are:
Income: your basic income, income from your investments, and any other earnings you have – for example, upfront or other allowances.
Front End Ratio: Gross income plays a vital part in determining the front-end ratio, also known as the mortgage-to-income ratio. This ratio is the percentage of your yearly gross income that can be dedicated toward paying your mortgage each month.
Back-End Ratio: The debt-to-income ratio, which is also called the “Back-End Ratio,” figures what percentage of income is required to cover debts. Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income.
The final important factor is your down payment.
The down payment is the amount that you can afford to pay out-of-pocket for the property, using cash or liquid assets. A mortgage bank will typically demand a down payment of at least 20% of a home’s purchase price, in some cases 30% or even as high as 50%. This is decided on a case-case basis.
Using a mortgage calculator can help you to get an estimate of the loan amount and the tenor.
You can send a DM to learn more.
#mortgagelender
#mortgageexpert
#mortgagespecialist #mortgageadvisor #mortgage #creatingshelterforall
See LessI am sure you would like to know how much loan you can access for a mortgage. The answer is different for everyone.
Income is only one small part of the mortgage equation.
When all things are considered, like your debt, down payment, interest rate, and the tenor, you might find you could borrow as much as 3 or 6times your salary/income for a mortgage. Or your budget could be smaller.
Some of the key factors that will be examined to determine the loan amount you are eligible for are:
Income: your basic income, income from your investments, and any other earnings you have – for example, upfront or other allowances.
Front End Ratio: Gross income plays a vital part in determining the front-end ratio, also known as the mortgage-to-income ratio. This ratio is the percentage of your yearly gross income that can be dedicated toward paying your mortgage each month.
Back-End Ratio: The debt-to-income ratio, which is also called the “Back-End Ratio,” figures what percentage of income is required to cover debts. Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income.
The final important factor is your down payment.
The down payment is the amount that you can afford to pay out-of-pocket for the property, using cash or liquid assets. A mortgage bank will typically demand a down payment of at least 20% of a home’s purchase price, in some cases 30% or even as high as 50%. This is decided on a case-case basis.
Using a mortgage calculator can help you to get an estimate of the loan amount and the tenor.
You can send a DM to learn more.
#mortgagelender
#mortgageexpert
#mortgagespecialist #mortgageadvisor #mortgage #creatingshelterforall
