![]() Please also note that such material is not updated regularly and therefore some of the information may not be current. Bank of America and/or its affiliates assume no liability for any loss or damages resulting from one’s reliance on the material provided. Better Money Habits® Powered by Bank of America® The material provided in this video is for informational use only and is not intended for financial or investment advice. Especially since you’ll have a mortgage that’s manageable for you. But with the right know-how, some patience and a little hard work, you'll soon be on your way to unlocking the front door to that new house you’ve always wanted. Buying-and, particularly, owning-a home can come with some challenges. So, it’s best to do research and compare your options before making any decisions. A lower down payment may be enticing and bring you closer to your dream of owning a home, but you’ll also have less equity and your monthly payment will be higher. But if saving 20% for a down payment seems daunting, you may have other options, such as government-sponsored loans that you might qualify for, or mortgages with down payments as low as 3%. Putting down at least 20% of your home’s purchase price is generally recommended, as it can get you a better interest rate and spare you from additional costs like private mortgage insurance-an added expense lenders typically require, to protect them in case you default. It’s also important to take some time to add up what you’ll want for a down payment. If it’s not a stretch, then maybe you’re ready to buy, and that money you save every month can give you a jump start on saving for your down payment later on. #Bank of america mortgage calculator plus#If you’re currently paying $1,000 for rent but a monthly mortgage payment-including property taxes, homeowners insurance, plus any additional costs like utilities, upkeep of the property, and, if necessary, homeowners association fees-would cost $1,500 bucks, take the additional $500 and put it into savings. That means seeing if you can afford the monthly payments for a place you want. Once you’ve determined exactly what you can afford, a good approach is to actually test out the payment. There are a lot of online tools that can make the calculation even easier. So, for example, if you make $3,500 a month, a realistic payment could be $980 including taxes and insurance. That’s how much a manageable monthly payment might be. A good rule of thumb is to take whatever you make each month, before taxes, and multiply that by 28%. Your monthly payment should fit comfortably within your life and not force you to put any other financial plans or important personal goals on hold. Once you’ve got a budget in place, focus less on how much you can borrow and more on how much you want to spend each month. Creating a budget can help you determine where a mortgage payment will actually fit in to your expenses. How much home can I afford? To avoid a mortgage that weighs you down every month, it’s a good idea to figure out all the expenses you can realistically manage ahead of time. ![]()
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