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on the ' home value I can afford ' of 3,000, does that mean I can pay a motgage of 3,000 per month

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October 11 - Frazier Park
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Profile picture for zoeboesmom
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If you are referring to Zillow's calculator here http://www.zillow.com/mortgage/calculator/How-much-can-I-afford.htm then no. The 'home value you can afford' on their calculator is the purchase price. The 'Equals: maximum allowable payment' is the amount per month for P&I.
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October 12
Profile picture for Martin Wareing
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Jadd,

Only you can really decide if you can"pay" a mortgage of $3,000/month.  These calculators do not consider Cellphone bills, Internet/Direct TV bills, health ins... etc..  If you are not paying anywhere close to that housing expense and are not "saving" the difference each month, you would be very "shocked" if you signed for a mortgage payment of that magnitude.  All "expenses" associated as an owner are then yours as well. (roof, AC, etc)..  The old school rules of 30% of gross for mtg payment and no more than 45% of gross for ALL payments is a feasible debt ratio.  Hopefully you will find a home and a mortgage that is desired with a payment you are comfortable with and that will be a WIN WIN.  Good luck.
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October 11
 

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Question on the ' home value I can afford ' of 3,000, does that mean I can pay a motgage of 3,000 per month
  • Latest answer by zoeboesmom
  • October 12
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