Loan officers state that 72 to 75% of your income goes for housing. This may be true these days. Gas prices should be way up there now.
No more than a third of your gross annual income should go towards housing. As for rent, you should not spent anymore than 25% of your gross income. Housing - This expense should include mortgage, insurance, gas, electricity, maintenance, and phone. (according to crown.org budget guide) Rent or your monthly mortgage payment plus each of the above should never exceed 36%. 1/3 is generally a good rule just as with the 1st answer, but don' t forget that the number includes the other housing expenses.
There is no exact percentage but it is recommended that around 10 percent of your income be put toward health insurance. Most people do not spend this much on health insurance.
(20-25)%
around 15%
If you recently have found out that you qualify for low income housing, then you may have a lot of questions. You may wonder what exactly low income housing is or what type of place you will be living in. Low income housing is housing designed to create decent living conditions for those below certain income levels. By living in low income housing, you will pay less money for a higher quality of living. The exact quality or standard of living varies widely from complex to complex. You may also hear low income housing referred to as HUD housing or Section 8 housing. These are all valid low income housing terms. Some cities have more low-income options than others. Some cities also have higher-quality low-income housing than others. Low income housing comes in all different varieties, from run-down old apartment complexes to new gated communities. Nowadays, you can never tell when a complex will be considered low-income. Low income housing has come a long way from the "projects" of the mid-twentieth century. There is no longer the stigma that low-income housing used to hold. Also, on average the living conditions nowadays are much better than they were twenty, thirty, or forty years ago. Do not feel ashamed that you qualify for low income housing. Of course, you should try to work to better yourself out of this position, but sometimes life happens. At least you know you can live in decent housing at an affordable price. Section 8 is designed to help you, not to make you feel embarrassed or ashamed. In fact, many Section 8 housing complexes have special workshops, activities, and other events that will help you get your foot out of the door and make more money so that you can live a better and more independent life. Just remember, when it comes to low income housing, you should not believe any stereotypes or make any assumptions. the face of Section 8 housing is changing. Things are only getting better and better. Section 8 housing is a stepping stone to a better life.
25 percent of income should go to house payment but the average is more like 50 percent.
The amount of home you can afford is based on your monthly or annual income. For example if you have a down payment of $10000.00 and a gross monthly income of $4000.00, your maximum home price should be $40000.00.
If you are referring to applying for a mortgage loan the following are good guidelines: proposed monthly payment divided into gross monthly income should range around 32% or less; total monthly obligations (not utilities) plus proposed monthly mortgage payment divided into gross monthly income should range around 41% or less. Of course, there are always deviations to these ratios i.e. the borrowers assets and / or credit score ratings.
Your monthly payment, assuming you have quoted the interest rate correctly, should be $165.83 if you pay this off in one year (12 monthly payments)
41.4dollars
The answer would be yes, depending. A good rule of thumb is to calculate 43% of your gross income. Then, subtract your monthly payments (credit cards, installment loans and such). You'll be left with a figure that should be close to you eligible amount for a total monthly mortgage payment (principal, interest, taxes and insurance). It would be wise to ensure that even if my calculation allows this total monthly payment to be over 31% of your gross income, that you try not to take a mortgage payment over that amount. Many do, but it stretches them financially.
If the monthly statement is not received, you still need to send in your payment. If you do not have the address, you need to call your creditor to see where the payment should be mailed to.
Yes, but they must be able to prove enough stable income to support their new mortgage payment. A good rule of thumb is that their new monthly mortgage payment should not exceed 31% of their GROSS (income BEFORE tax) monthly income. Stable income is income that has been received on a consistant basis for a minimum of 2 years. If your source of income is from Disability, Child Support, Alimony, or Social Security, you must be able to prove that you will continue to receive this income for at least the next 3 years.
You add up all of your monthly income and derive a number. You then add up all of your debt. Home loans, auto loans etc. The difference is your debt to income value. What you are really looking for, and what banks want to know is your monthly debt to income ratio. In this you will take all of your monthly bills. Auto loan payment, rent, phone and every bill you can think of. you add these together. You then look at your total credit card debt and divide this by 12. You add that into your total monthly payments. This is your monthly debt payment. To be considered to be sound as far as banks go, you total debt payments should NT be more then 50% of your income. It used to be 25% of your monthly income could go towards a mortgage or rent. They have moved that number up some, but it is a nice point to aim for.
The maximum you should spend on housing is 30% of your monthly income. If your gross monthly income is $1800, you should spend no more than $540 per month.
188.93
See, it has to be a ratio of your total monthly income and your total monthly debt payments. First of all, you should add your monthly income. On the other hand, you have to add your monthly bills e.g. rent, car loan, phone etc. Your total credit card outstanding balance has to be divided by 12 and the figure that you achieve has to be added with your total monthly bill payments. Thus, you arrive at your debt payment each month. You must ensure that your debt payments shouldn't exceed 50% of your earnings. You can use a debt-to-income ratio calculator to know the correct figure.