Florida How Much House Can I Afford
If I want to settle in Florida how much house can I afford? That’s a very good question, and we’re glad you asked. Our real estate experts here at Moreira Team would be pleased to help you determine the range of homes you can afford. So give us a call, and we will gladly give you a custom Florida how much house can I afford rates.
Ultimately, the house you can afford is determined by how much mortgage you qualify for. Lenders will use several ratios and factors to determine that. And while we can’t cover all of them here, we can give you an idea of what to expect. But be sure to contact us for a detailed analysis of how much mortgage you can afford so that you know exactly what to expect as you shop around for your dream Florida home.
The first thing is front-end ratio. This is the portion of your gross income that is dedicated to mortgage payments; i.e. paying the principal amount (P), interest (I), taxes (T) and insurance (I) (usually referred to as PITI). Florida lenders insist that your sum of PITI payments should not exceed 28% of your gross income. But most will still offer you a mortgage loan if your PITI takes up 30 to 40% of your income.
Secondly, there is the back-end ratio. This is your debt to income ratio. It shows your capacity to pay your debts using your income. Other than your potential mortgage, other debts considered include credit card, health payments, child support and other loans. In Florida, most lenders are comfortable with a back end ratio of 36%, but you can negotiate to as high as 45%.
Another important factor is your down payment. You can get mortgage loans even with 0% down, but if you are in a position to put at least 20% down the better. That will minimize your monthly insurance premiums and interest rates.
So, as long as you know how much down payment you have and can calculate the two ratios above, you can work backward (starting with how much you can set aside for monthly mortgage payments) and then determine how much house you can afford in Florida. It could be a tricky calculation, so why not let our crew help you with it. Give us a call, and we will get straight to it.
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