04/10/2025
Okay, okay, let’s actually talk about it: your budget and how much you can REALLY afford. 🏦
When you know your budget, you can make the best decisions and get a home that won’t leave you house broke!
Figuring out what you can really afford requires making personal decisions about what you want to put your money towards. Here’s one way to think about your budget
First, make a list of your monthly income, after taxes and deductions. 💰
Then make a list of your monthly debts: credit card payments, car loan payments, etc. 💸
Lastly, write down the amount you currently spend on housing.
Now that you have those numbers, let’s do a little math!
First, subtract your debts from your income, then subtract your monthly housing payment from that number.
This remaining amount is what you have to spend on everything else in your life like bills, savings, and fun stuff. It’s also what you can look at allocating towards a larger mortgage payment.
Most lenders recommend you spend no more than 29% of your income on your home, and no more than 41% of your income on your debts.
It’s up to you to decide if that’s what you’re comfortable spending that much or if you want to allocate your monthly funds in another way, like adding more to savings, or more for fun stuff.
Remember, you might get approved for more mortgage than you’re comfortable paying, so it’s important to know where your comfort level is so you can get into a mortgage that works best for you. 👏
Drop your questions about budgeting below—let’s talk!
Miranda McCullough
REALTOR®
S.0187297
at RE/MAX Advantage
702-556-5225