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How Much Can You Afford? Missouri

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

Local Companies

AAA Home Mortgage
816-452-9492
3000 NE Brooktree Ln
Kansas City, MO

Joyce Hunter, Mortgage Consultant
314-450-4016
8125 Delmar Blvd.
St. Louis, MO

Countrywide Home Loans
816-455-3900
303 NE Englewood RD
Kansas City, MO

Midwest Mortgage Capital
314-787-2900
1227 Fern Ridge Pkwy Ste 200
St. Louis, MO

Agf Mortgage
816-361-9988
9140 Ward Pkwy
Kansas City, MO

New Beginnings Mortgage
816-595-6220
9200 Ward Pkwy Ste 410
Kansas City, MO

Assured Mortgage, LLC
816-468-1209
6910 N Holmes Suite 201
Kansas City, MO

APPROVED MORTGAGE
816 461-9900
13910 e noland ct
independence, MO

Gateway Mortgage Group
866-901-6184
100 S Main Suite A
Clinton, MO

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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

AAA Home Mortgage

816-452-9492
3000 NE Brooktree Ln
Kansas City, MO

Read more about How Much Can You Afford?

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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