How To Calculate Mortgage Payment Affordability
| Money : Borrowing When you go and see a mortgage advisor to discuss a potential mortgage, they will usually use an online calculator to tell you exactly how much your repayments would be each month. Using this information and getting a few quotes, you will be able to find the most attractive mortgage for you and your circumstances. But how do you calculate how much you can afford to pay back each month? Well the easiest way is to do a budget sheet of all your income and outgoings. Be sure to take into account small and variable costs as well as fixed costs, as they can all mount up. Also be sure to include some float for miscellaneous expenses. If you are taking on a mortgage then as a rule of thumb you should always try to have enough money saved to cover between three to six mortgage payments. That's because if you lose your job on average it takes someone a few months to find a new job, so you need that comfort zone to exist in between. If your mortgage payments are going to cripple you financially, then consider holding off another few months if possible before taking on a mortgage.
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