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How Much Can You Afford? Mississippi

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

Local Companies

Easy Money Emg
(601) 939-0262
401 Cross Park Dr
Pearl, MS

Shelby Mortgage Corporation
662-280-7730
917 Ferncliff Cove #5
Southaven, MS

FAIRWAY MORTGAGE
662-429-5100
224 West Commerce St
Hernando, MS

Mortgage Lending Group
601-664-9200
586 Lakeland Drive East Suite A
Flowood, MS

American General Financial Services
(601) 924-4602
602 Springridge Rd
Clinton, MS

BancorpSouth
(601) 925-4111
812 Highway 80 E
Clinton, MS

Bankplus
(601) 926-0003
217 Clinton Blvd
Clinton, MS

BancorpSouth
(601) 936-8400
2301 Highway 80 E
Pearl, MS

Navy
(601) 939-5916
15214 Crossroads Pkwy
Pearl, MS

Regions Mortgage Applications
(601) 960-2565
3101 Highway 80 E
Pearl, MS

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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

Easy Money Emg

(601) 939-0262
401 Cross Park Dr
Pearl, MS
http://www.cash30minutes.com

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History