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Inflation and the Market
The bottom line is inflation is heavily tied to changes in the market. Real Estate is, overall, different than we've seen, but there's surely still an opportunity for both buyers and sellers to achieve goals depending on circumstances. If you are considering buying or selling in the next 12 months, I'd love to chat to see if it makes sense. and find a plan to help you meet your specific goals.
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How much can you afford?
Owning a home is often cheaper than renting a comparable one, but figuring out just how much home you can afford isn’t always easy. While rents are priced in simple monthly amounts, home prices need to be broken down into upfront and monthly payments. So how much home can you afford to buy? Here are some simple guidelines you can use to find out.
The first step to determining how much home you can afford is calculating your monthly housing budget. One common guideline is the 28% rule, which states that you shouldn’t spend more than 28% of your gross (before taxes and deductions) monthly income on total debts, including your mortgage, credit cards and other loans.
Therefore, if your household has a gross monthly income of $6,000 and no other debt, you could expect to afford a $1,680 monthly mortgage payment ($6,000 x 0.28). We can see that this monthly payment roughly equals a $280,000 loan amount for a 30-year mortgage with a 6% interest rate (6.111% annual percentage rate). This means you could expect to afford the monthly payment on a $280,000 home with no down payment or a higher-priced home with a down payment (such as a $350,000 home with a 20% down payment and the same $280,000 loan amount).
Keep in mind that the 28% guideline is just a rule of thumb, and the exact monthly payment you can afford and loan amount you can qualify for will vary up or down based on your specific situation.
Monthly payments are just a factor in affordability. If you are interested in talking more about upfront costs, the tax benefits of owning a home, property taxes, or questions about a specific neighborhood or home, please don't hesitate to reach out anytime.
Trunk or Treat TOMORROW!
I'm proud to invite you and your family to my Fall event tomorrow! Please join me for Trunk or Treating on Saturday 10/22 from 1PM-3PM. Another chance to dress up (and get candy) for Halloween! No cost and will take place at Keller Williams Parking lot in Pepper Pike (29225 Chagrin Blvd Pepper Pike, OH 44122). Please click below for more information and to sign up.
