Find Out How Much You can Qualify For In Your Next Miami Mortgage

Posted on November 25, 2009
Filed Under Unemployment Will Cause The Most Foreclosures In 2009! |

Getting a mortgage in Miami, particularly your first time around, is an important economical step. As we have seen in the last couple years, you can get into a lot of difficulties if you get a home mortgage you can’t pay back. To prevent this situation from happening and degrading your credit should you lose your job or have different economical difficulties once you own your home, pay close consideration to how much mortgage you can afford.

Fortunately, it’s easy to find out how much house you could pay for by utilizing three simple steps that determine percentages of your monthly earnings.

First, your monthly payment might not be more than 28 percent of your before-tax monthly paycheck. For example, if you and a spouse have a combined annual paycheck of $80,000, your home mortgage payment mustn’t be over $1,866.

Second, your total housing payments shouldn’t not be over 32 percent of your gross monthly income. To figure this rule, add up other home expenses, such as home owner’s insurance, property taxes and private mortgage insurance (PMI) onto your mortgage payment. This amount should not be over 32% of your gross monthly paycheck. That means for the same married couple making $80,000 per year, their total monthly home expenses couldn’t be over $2,133 / month.

Then, your total debt payment can not be more than 40 percent. Do you have credit card debt, car loans, or department stores payment? If so, you have to be careful that your total monthly payments plus your total monthly home payments don’t go over 40% of your before-tax monthly income.

Pay attention to this example to find out how much you might obtain in your next mortgage in Miami. If you assume a 6% fixed interest rate on a 30 year loan (rates are actually lower at present times if you have very good credit history), your home mortgage payments will be about $55 for every $10,000 borrowed.

First, divide $1,866 (the maximum monthly amount for the married couple’s mortgage obligation) by $55 and obtain 33.93. Then, multiply 33.93 by $10,000 and obtain $339,300, your maximum home mortgage amount you could qualify for.

Ready to start looking for a house? Save time, money, and aggravation by lining up your financing first. obtaining a pre-approval offers you the trust that you will qualify for a mortgage in the amount you want, plus it shows sellers and their agents you’re committed to the process.

Also, your real estate agent will take you more seriously since you have completed your homework and know what you desire. The biggest concern that real estate brokers have is to spend their time with people who are just looking and are not committed to purchasing a home.

By following the rules mentioned in this article, you will be able to easily qualify for your Miami mortgage. To learn more, you can visit our Miami mortgage site or go to our offices at: Miami Mortgage Home, 95 Merrick Way, Suite 514, Coral Gables, FL 33134 (305) 710-5183. Also, by being pre-approved for a mortgage, you’ll have a better idea of what type of house to go after and what is the maximum value you could pay for your home.

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