All About Home Renovation
Do you know that there is an income calculator if you are dead set for a home renovation.
The calculator will help you to arrive at an “affordable” home price following the guidelines of most lenders. It allows a total debt-to-income ratio of no more than 36 percent. And it can assume a housing payment-to-income ratio of 28% for our conservative estimate, and 33 percent for the aggressive one. Before buying, however, you should also factor in other savings needs, including retirement and college.
Assuming a 30-year mortgage term, annual property tax of $3,500 and homeowners insurance of $481 — the national average. And we do not factor in private mortgage insurance, which you’ll owe if your downpayment is less than 20 percent of the purchase price. It averages from $50 to $80 per month.
I suggest that you plug in your own numbers for more tailor-made results.
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