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Mortgages & Loans

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  4. How can I estimate how large a Mortgage I can afford ?

How can I estimate how large a Mortgage I can afford ?

Some banks use a 33%/38% ratio guideline. According to this guideline your monthly mortgage payment including principal, interest, taxes and insurance should not be more than 33% of your gross monthly income. Also your total monthly debt payments including the mortgage, credit card payments and installment loans should not exceed 38% of your gross monthly income.

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