How much will I get approved for a home loan?
Home Mortgage
Doris asked:
I have no idea about loans or purchasing a home. Asking this question to strangers is about as far as I’ve gotten. I’m single, have a pretty small teacher’s salary of around $30,000 a year, and have an excellent credit score. How much do you think I could get a home loan for?
Donna
I have no idea about loans or purchasing a home. Asking this question to strangers is about as far as I’ve gotten. I’m single, have a pretty small teacher’s salary of around $30,000 a year, and have an excellent credit score. How much do you think I could get a home loan for?
Donna
March 31st, 2009 at 5:34 am
Jared
Go to the lenders of the funds and ask them. They will determine this depending upon the information you give them.
Most prudent lenders will only lend an amount upon which the repayments will represent no more than 30% of your gross income.
In your case 30% of $30,000 is $9,000.
Now $9,000 repaid per annum would support an interest only loan of approximately $90,000 at an interest rate of 10% pa or an interest only loan of approximately $180,000 at an interest rate of 5% pa.
April 2nd, 2009 at 12:50 pm
Jackie
Dunno what ur country ur at but down under you may be able to get about $150000. If you had some assets u may possibly get more.
April 3rd, 2009 at 12:49 pm
Brad
Creditors have obviously tightened up. Part of the problem that got us into the current financial mess was that mortgage companies issued mortgages that were beyond what people can afford.
The rule of thumb is that your monthly housing cost should be more than 30% of your income. In your case, your mortgage payment shouldn’t be more than about $750/month, which would equate to a loan of approx $100,000. The exact amount will depend on interest rate, PMI and other factors, but $100K is probably within $10K of the maximum you should shoot for.