How Much Can You Borrow?

How much you can borrow will depend on your income, down payment, job stability, existing debts, credit references and payment history. Lenders usually use the following two qualifying guidelines to decide how much of a loan you can manage:                                                                                                   

• Your monthly housing expenses – mortgage payment, property taxes, insurance, etc. These expenses should be no more than 28 percent of your monthly gross income.

• Your monthly living expenses and any long-term debts – utilities, car and school loan, child support, health and car insurance, etc. These expenses should be no more than 36 percent of your monthly gross income.

There are mortgage qualifications that allow higher ratios than 28/36. Contact Frank Armstrong for more information.
                                       

Contact Frank Armstrong

RE/MAX of Rochester 4600 18th Ave NW Rochester, MN 55901 Toll Free 1-888-736-2904 Direct 1-507-287-7722 Each Office Is Independently Owned and Operated

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