Mortgage rates have risen slightly in the past week. There’s no need to worry though; the current rate for the 30-year fixed rate is still under 3% and likely will stay that way for quite a while. The mortgage market is still concerned with COVID-19’s delta variant outbreaks as well as when Federal Reserve will taper the purchases of bonds.
When you buy a house, a helpful tool to use is the 36/45 rule to help decide whether you can afford one or not. The 36/45 rule simply means that your total expenses on your home should not exceed 36% of your gross monthly income. This includes the mortgage, property taxes, homeowner insurance policy premium, mortgage insurance (if applicable), and HOA dues. The other aspect of this is the 45%. Your debt-to-income ratio is calculated here, and your credit card monthly payments, car installments, student loans, alimony, and the like should not exceed 45% of your gross monthly income.
If you don’t meet the 36/45 rule not to worry, you can still get a mortgage. There are many new programs other alternatives available. To find out what programs are available for you, contact me at 925-216-3618 Today.