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David
Joined: 19 May 2004
Posts: 754
Location: Atlanta, GA
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| Posted: Fri Jul 02, 2004 11:22 pm Post subject: The six factors affecting how much you can afford |
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The amount you can afford to pay for your house will depend on six factors:
1. gross income
2. cash on hand needed for your down payment and sometimes reserves (required by the lender)
3. total outstanding debts
4. credit history
5. the mortgage type
6. interest rates (or the rate you "lock in") |
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squirrel
Joined: 29 Jul 2004
Posts: 11
Location: Bucharest, Romania
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| Posted: Thu Jul 29, 2004 12:38 pm Post subject: |
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Please explain what you mean by:
- reserves
- "lock-in" |
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David
Joined: 19 May 2004
Posts: 754
Location: Atlanta, GA
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| Posted: Sat Jul 31, 2004 5:03 am Post subject: |
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"Reserves" means that you have extra money in case of emergency.
"Lock in" refers to getting an interest rate guaranteed for a period of time. Maybe you are looking for a house, and you want to guarantee an interest rate. Most lenders will let you "lock in" the rate, so you will be know exactly your payment per month. |
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