Affording a Mortgage

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Denise Alicea

This blog was created by Denise in September 2008 to blog about writing, book reviews, and technology. Slowly, but surely this blog expanded to what it has become now, a central for book reviews of all kinds interviews, contests, and of course promotional venue for authors, etc

Affording a Mortgage


Photo by Karolina Grabowska from Pexels


When most people are ready to take the big step of buying a home, they have to do a lot of research, find out what they can afford. So how do you take the first step on your home buying journey? Make a list of everything you spend money on each month. Based on your income after taxes, you can decide if your current spending is aligned with your saving goals. In order to buy a home, you have to get a mortgage.

What is a mortgage? A mortgage is “is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest. Mortgage loans are used to buy a home or to borrow money against the value of a home you already own,” (Consumer Financial Bureau, 2017).

The top seven things that you can look for in a loan are the following: the size of the loan, interest rate and any associated points, the closing costs of the loan, including the lender’s fees, the type of interest rate and whether it can change (is it fixed or adjustable?), the loan term, or how long you have to repay the loan, and Whether the loan has other risky features, such as a pre-payment penalty, a balloon clause, an interest-only feature, or negative amortization. Another point of reference is to look into the companies who are providing the loan, their reviews, and reputation. This will help you choose the right lending company.

According to CNBC, “Home prices nationally in January rose 11.2% year over year, according to the latest S&P CoreLogic Case-Shiller Index. That is the largest annual gain in nearly 15 years.” There are a number of benefits to owning your own home: it provides more housing security for you and your family; the equity you have in your home is a form of savings account, instead of paying rent to someone else; there are also tax benefits. Homeowners are allowed to deduct mortgage interest and property taxes when they file tax returns each year. If you get a fixed-rate mortgage on a home purchase, your mortgage payment can never change. Unless a renter is in a rent-controlled building or neighborhood, their rent is at risk of rising every year. When a homeowner is making a mortgage payment, a portion of that payment is paying the loan down each month, giving the owner more equity in their home.

So, when you’re buying a home be sure to look into the following: This means looking into the area, local amenities such as grocery stores, schools, hospitals, and public transportation. This is about deciding if these are sufficient for you and something you can afford. It’s all about doing the research until you find what makes you happy.

Mortgage calculator is a free website that you can use to help you calculate mortgage payments based on your income. Mortgage Calculator makes learning about how much you can afford easy with other tips and tricks to help make the experience even easier! Who couldn’t want more?! Mortgage Calculator as a company puts themselves out there to make it a pleasant experience to something that can be deeply frustrating for many. So, when you’re looking for financial advice, use a mortgage calculator !

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