Calculate your magic number for buying a home

Calculate your magic number for buying a home

The magic number of home buying...

There's one crucial number you absolutely need to know – and it's not just your credit score. It's your 'magic number' for home-buying affordability.

Financial experts advise keeping your mortgage payments at or below 28% of your pre-tax income if you're carrying minimal debt. 

But if you've got other financial obligations, the game changes. Now, it's about ensuring your TOTAL debt payments – spanning from your mortgage to student loans and credit cards – don't surpass 36% of your pre-tax income.

Say you're bringing in $5,000 each month. According to the 28% rule, you could earmark up to $1,400 for your mortgage assuming no other debts exist. But if existing debts demand $600 monthly, the 36% rule nudges you to adjust your mortgage budget to $1,200, aiming to cap total debt payments at $1,800 or less.

That's the magic number! It's the number that ensures you can live comfortably while owning.

So, what's your magic number? 

Send me a message - I can recommend a great lender to help you crunch exact numbers

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