You have saved a down payment, cleaned up your credit, have been looking on-line dreaming for months now and finally have found a great Realtor to help you. So now what? Go out looking at homes? Not so fast. You need to find out how much of a house you can buy? It does no good to look at $350K homes when you are more in the 250K range. If you start, believe me, it will be very had to settle in your mind on what you saw and what you can get. You need to meet with a lender and get the good news- “Yes you are pre-approved for a motgage of _____.
Have you ever wondered how they come up with what they do and what formula is used? The chart below is a handy guideline to reference what your payment would be based on your income and how much home you can afford. Look how interest rates play into this. Its huge! For example, we bought our house in 1998 and paid a whopping 7.25%! Look at the difference today versus then. In other-words you can afford more house now. I bank with BECU and checked current rates today they are at 3.881% for a 30 year. In the 4rth quarter of 2012 rates were about 3.36%. There coming up!
We know these great rates wont last forever so if your on the fence take a look at what your payment would be and see if it makes sense for you. For example here in Snohomish County rents are around the monthly payment for a $300K single family home. Crazy huh?
If you decide now is the time contact me and lets get started !
| Interest Rate | 3.25% | 4.25% | 5.25% | 6.25% | 7.25% |
| 200,000 | |||||
| Monthly Payment | $1,266 | $1,377 | $1,496 | $1,620 | $1751 |
| Monthly Income | $3,246 | $3,542 | $3,835 | $4,155 | $4,489 |
| Hourly Pay | $18.73 | $20.37 | $22.12 | $23.97 | $25.90 |
| 250,000 | |||||
| Payment | $1,572 | $1,712 | $1,860 | $2,015 | $2,179 |
| Income | $4,032 | $4,389 | $4,768 | $5,168 | $5,586 |
| Hourly | $23.26 | $25.32 | $27.51 | $29,81 | $32.23 |
| 300,000 | |||||
| Payment | $1,879 | $2,046 | $2,223 | $2,411 | $2,606 |
| Income | $4,817 | $5,246 | $5,701 | $6,181 | $6,683 |
| Hourly | $27.79 | $30.27 | $32.89 | $35.66 | $38.55 |
| 350,000 | |||||
| Payment | $2,185 | $2,380 | $2,587 | $2,806 | $3,034 |
| Income | $5,603 | $6,103 | $6,634 | $7,194 | $7,780 |
| Hourly | $32.33 | $35.21 | $38.27 | $41.50 | $44.88 |
Jen Murrweiss RE/MAX Elite 