This is your principal + interest payment, or in other words, what you send to the bank each month. But remember, you will also have to budget for homeowners insurance, real estate taxes, and if you are unable to afford a 20% down payment, Private Mortgage Insurance (PMI). These additional costs could increase your monthly outlay by as much 50%, sometimes more.
One of the first steps in securing a mortgage is an affordability assessment. Mortgages are risky both for you and your lender, so your lender will want to make sure you have the means to make repayments for the duration of the term.
But affordability assessments are also important for another reason: they determine how much you can borrow. In turn, this has a huge bearing on what kind of property you can afford to buy.
Please feel free to contact us for more information...
Red Fox Money is a trading style of Beneficial Mortgages (Manchester) Ltd which is an appointed representative of Beneficial Life (London) Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655. Beneficial Mortgages (Manchester) Ltd is authorised and regulated by the Financial Conduct Authority, 776566. Company Registered in England and Wales, registration number 10721895.