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How Much Can You Afford? Louisiana

Shopping for a home but not sure how much you can spend? Here's how to figure out your price range.

Local Companies

Avenue Mortgage
504-525-4663
322 Lafayette St
New Orleans, LA
Beneficial Mortgage
504-733-6996
1200 S Clearview Pkwy
New Orleans, LA
A American Mortgage Network
225-298-1210
2900 Westfork Dr
Baton Rouge, LA
United First Financial
225 921-2206
9345 Corsica Ave
Baton Rouge, LA
360 Mortgage
225-293-6422
3851 S Sherwood Forest Blvd
Baton Rouge, LA
Benchmark Mortgage
504-737-8440
6226 Jefferson Hwy
New Orleans, LA
1st Continental Mortgage of Br
225-295-0750
2531 Toulon Dr
Baton Rouge, LA
Amerivest Mortgage Corporation of Louisiana Inc
504-529-3771
365 Canal St
New Orleans, LA
Ameri Home Mortgage LLC
504-218-7674
4011 Saint Claude Ave
New Orleans, LA
Best Mortgages Resource
504-363-4757
3725 Macarthur Blvd
New Orleans, LA

provided by: 

Qualification ratios are set by the lender that state your housing expense to income, and housing expense plus other debts to income, cannot exceed a specified number. Many lenders use a 28% housing expense to income and a 36% housing expense plus debts to income. Other ratios may be how much you put down on a home.  It is important to remember that these ratios may vary from lender to lender and each application is handled on an individual basis.

 

Housing Expenses

Your montly housing costs include the mortgage principle, interest, taxes and insurance often abreviated PITI.

 

  • Generally speaking, to qualify for conventional loans, housing expenses should not exceed 26% to 28% of your gross monthly income.
  • For FHA loans, the ratio is 29% of gross monthly income.

 

Example

Annual Income

 

Gross Monthly Income

Maximum Conventional Loan Housing Expense

Monthly Housing Payments

$30,000

÷12

$2,500

X28%

$700

 

Long-Term Debt

Any expenses that extend 11 months or more into the future, such as car loans, are termed long-term debt.

  • For conventional loans, total monthly costs, including PITI and all other long-term debt, should equal no greater than 33% to 36% of your gross monthly income.
  • For FHA the ratio is 41%.

 

Budgeting for Your Home

When budgeting to buy a home, it is important to allow enough money for additional expenses such as:

 

  • maintenance
  • utilities
  • homeowner’s insurance
  • property insurance

 

Published on January 25, 2007

Read full article at realestate.com

Featured Local Company

Avenue Mortgage

504-525-4663
322 Lafayette St
New Orleans, LA
Read more about How Much Can You Afford?

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