Читать книгу Mortgage Management For Dummies - Tyson MBA Eric - Страница 5

IN THIS CHAPTER

❯❯ Understanding how much mortgage debt you can truly afford

❯❯ Estimating your likely homeownership expenses

❯❯ Considering your other financial goals

If you’re like most folks, the single biggest purchase you’ll make during your lifetime will be when you buy a home. And, to make that purchase, you’ll likely have to borrow money by using a loan called a mortgage. The cumulative payments on that mortgage will far exceed the sticker price on your home due to the interest you’ll pay.

Most people thinking of purchasing a home focus solely on the price of the home. If you’re in the enviable position of being able to pay all cash, then the price is really all you need to consider in determining whether you can afford a given home. But the vast majority of people purchase real estate with financing. So although the purchase price is important, the reality is that the mortgage terms that you’re able to secure and negotiate will determine the monthly payment that you can afford and will dictate the maximum price you can pay for your new home.

In this chapter, we help you tackle this first vital subject to consider when the time comes to take out a mortgage – how much mortgage can you really afford? Note: We intend this chapter primarily to help people who are buying a home (first or not) determine what size mortgage fits their financial situation. If you’re in the mortgage market for purposes of refinancing, please also see Chapter 11.