What price house can i afford

When you are trying to get an estimate of what you can spend for a home, multiply your annual gross income before your taxes by 2.5.  For example, if your annual household income is $40,000, you might be able to qualify for a $100,000 home.  This is just a rough estimate and the actual amount will vary based on factors such as your debt and credit history.  Mortgage lenders typically use the housing expense and debt to income ratios to more accurately determine how much you can afford to spend on your mortgage.  

Housing Expense Ratio

Mortgage lenders recommend that your monthly mortgage payment should be less than or equal to a quarter of your monthly gross income.  This percentage can change based on the type of mortgage you choose and sometimes the area in which you are looking to buy.

Debt to income Ratio

 Before you decide to look at all the Boise real estate property listings make sure you know exactly where you qualify so your real estate search is fruitfull.