“We’re beginners in the homebuying game. Can you give us some tips on deciding how much to spend on our monthly mortgage payment?”
Answer:
I want you to come up with 2 monthly payment figures.
They should include loan payment, taxes, insurance, and possible HOA fees, Mello-Roos fees, or mortgage insurance. Be sure to factor in that loan interest and property taxes are tax deductible.
Here are the 2 figures to come up with:
1. __________ = Monthly payment you can comfortably afford.
2. __________ = Monthly payment you’d live with if you find a pricier home you’re absolutely crazy about. This payment should NOT be so high it puts you at financial risk.
Why #2? The best homes sell fast. If your dream home costs a few extra bucks, I want you to know up front if you’re going to let it go, or go for it.
Then go talk with a great lender (call me at 858-457-KENT to get in touch with the GREAT lender we use) to find out what price home those payments correspond to and make sure you qualify.
Be Savvy & Successful With Your San Diego Real Estate Investing
