Walk a Kb or Two in my Moccasins- Nobody 'splained it to me like that!

Simple answers to Complex Questions and Complex Answers to Simple Questions. In real life, I'm a Greater-Toronto (Canada) Realtor with RE/MAX Hallmark Realty Ltd, Brokerage. I first joined RE/MAX in 1983 and was first Registered to Trade in Real Estate in Ontario in 1974. Formerly known as "Two-Finger Ramblings of a Forensic Acuitant turned Community Synthesizer"

My Photo

- Realtor (2nd or 3rd best you'll likely run into)
- Philosopher King of Real Estate Business in Ontario (self-assessed)
- Likes Public Policy & Governance Discussions
- Likes discussion on being an "Attestant" and First-Century Ecclesias(aka 'primitive congregations)

Sunday, September 12, 2010

How much of a mortgage can I afford?

Q......How much of a mortgage can I afford?
from Zoocasa ASK the PROS

A....... Robert Ede

Quickly & assuming you have good credit and 5% down:

Take your Gross (ie pre-tax) Annual Family Income

Divide it by 40

Answer is the monthly payment you can carry including 1/12 annual taxes and est. monthly heat.

Subtract an allowance for 1/12 taxes & heat

Divide new answer by 5.25

= the # of thousands you can likely qualify to carry at 4% interest 25yr ammortization


$90,000yr /40


less 300/mth (annual 3600 taxes)

less 200/mth (est.monthly heat)


div by 5.25 (factor per thousand at ~4% on a 25 yr ammm.plan)

= 333

You should be qualified for ~$333,000 mortgage


Post a Comment

Links to this post:

Create a Link

<< Home

Politics Blog Top Sites