#How much money does go fund me take pro

Pro Tip: Many first-time home buyers are surprised when they discover how much money goes into closing costs. A good tip is to head over to Credible, which provides realistic interest rate estimates on a purchase or refinance in as little as five minutes. Being off by even half of a percent can mean the difference between a good and bad decision.

When determining how much house you can afford, interest rates make a world of difference. Why the difference? Because a 15-year fixed-rate mortgage typically has a lower interest rate than a 30-year mortgage. In the example, the interest rate is 4.459%. In the Dave Ramsey example, the interest rate is 3.66%. If you look closely, one of the biggest differences between the two examples is the mortgage rate. Under Dave RamseyвЂ™s guidelines, youвЂ™d need a monthly net income of $11,924 ($143,088 annually)В in order to afford a monthly mortgage payment of $2,981.

$500 per month of any other debt, such as student loans, credit cards, or car payments.

How Much House Can You Responsibly Afford?Дave RamseyвЂ™s rules allow you to buy much less house than most mortgage lenders and real estate agents want to sell you - not to mention, much less house than other calculators will say you can afford.ДЄs an example, hereвЂ™s a look at what вЂ™s affordability calculator determines a person can afford based on the income from the previous example, along with estimates of monthly debt and a down payment:

To get this number, simply look at your recent paychecks. Net income is the amount you make after taxes and other expenses are taken out. Gross income is the amount you make before taxes and other deductions. So, if you take home $5,000 a month after taxes, you can afford a $1,250 monthly payment.Дave advises using your monthly take-home pay (also known as net income) rather than your gross monthly income. In this example, that means earning $115,680 per year after taxes.ДЄn alternative calculation method is dividing your monthly take-home pay by four. According to RamseyвЂ™s rule that your housing expenses should never be higher than 25% of your income after taxes, a mortgage payment of $2,410 would mean youвЂ™d need take-home pay of $9,640 per month ($2,410 multiplied by four). The question of home affordability comes down to your monthly income.

Private mortgage insurance of $113 a month.

HereвЂ™s a look at what Dave RamseyвЂ™s calculator determines a person or family can afford with: Using the affordability calculator on, you can calculate the maximum monthly payment you can afford under these guidelines. How Much House Can I Afford (Dave RamseyвЂ™s Guidelines)ДЇinancial rule of thumb: Dave RamseyвЂ™s advice for buying a new home is to limit your monthly payment (including homeowners insurance, homeowners association fees, and property taxes) to 25% or less of your monthly take-home pay on a 15-year fixed-rate loan.ДЄnalysis: This housing rule of thumb is quite different than the recommendations youвЂ™ll find elsewhere. How much should I spend on an engagement ring? Should I pay off debt with the highest interest rates or the smallest balance first? How big of an emergency fund should I have?

Other Dave Ramsey Financial Rules of Thumb.

How Much House Can I Afford (Dave RamseyвЂ™s Guidelines).

Then, weвЂ™ll take a look at nine other Dave Ramsey вЂњrules of thumb,вЂќ such as how much car you should buy, how much you should save for retirement, and other valuable tips that will help you make better financial decisions.

This post will help you determine not only how much house you can afford, but also how much house you should responsibly buy. Mortgages are one expense that has to get paid - even if that means building up credit card debt. households carrying credit card debt, itвЂ™s easy to make the argument that the majority of homebuyers purchase more house than they can afford. One common trait shared by residents of these areas was that they bought too much house. We spend a significant portion of our income on housing, so itвЂ™s important to get this question right.ДЄ recent Federal Reserve study found that the cities which suffered the most severe impacts from the 2008 financial crisis were those with the highest average personal debt-to-income-ratios. Arguably, his most important is the answer to the question: вЂњHow much house can I afford?вЂќ Dave Ramsey has a number of вЂњrules of thumbвЂќ for managing your finances.