Im looking to buy a small appartment
Is there a SIMPLE-to-understand online calculator thing which will automatically calculate the amount of mortgage i can take out if i simply type in my current salary?
The calculator thing MUST be simple! I dont know much about salary. Most calculators ask me to type in the "repayment period" which is easy (i type in 25 years) but i have no idea what to type for "interest"…
Does anyone know of a simple online calculator thing?
Thanks!
thank you SO much for the "UK reply"
I knew the house prices were low, but I didnt know they are expected to drop even more.
UK reply
Agree with 2nd answer re 3.5 x salary but in the UK there is an even bigger importance now!
If you haven’t got 20% deposit – forget it! That is 20% in real money not borrowed from someone else!
Banks do not want to lend anyone at present, so they will only lend to the best possible repayers!
Also in the UK now is not the time to buy!
Houses have dropped 16% in the last year. Projected to drop 15% this year, could be more!
rr
References :
There really isn’t, because a lot of factors go into the size of mortgage you can be approved for. The major factors are your other monthly bills (how much of your income is going for other things, such as car payments or credit card debt) and your credit score–which affects the interest rate you can get.
Many of those onlne calculators will automatically fill in numbers that are pretty close to today’s figures. Interest rate, for example–that’s around 5% today. Most mortgages are either 30-year or 15 year. 15 year will cost more per month, but you’ll pay off your mortgage a lot faster.
It’s a trade-off. The more complicated the online calculators, the more accurate they are. The less complicated (for example, not taking into account your debt, etc.), the less accurate they will be.
If you want a real, real simple (and thus not-too-accurate) way of figuring it, take your annual income. Multiply it by 3.5. That’s how much mortgage you can afford. So, to use round numbers, if you earn $10,000 a year, you probably could handle a $35,000 mortgage.
Really, the best way is to go directly to a mortgage broker or lender. Have him/her analyze your actual numbers, and come up with a figure (or range of figures) for you.
Hope that helps.
References :
UK reply
Agree with 2nd answer re 3.5 x salary but in the UK there is an even bigger importance now!
If you haven’t got 20% deposit – forget it! That is 20% in real money not borrowed from someone else!
Banks do not want to lend anyone at present, so they will only lend to the best possible repayers!
Also in the UK now is not the time to buy!
Houses have dropped 16% in the last year. Projected to drop 15% this year, could be more!
References :
try http://www.bankrate.com
References :