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mortgage payment rule of thumb

Mortgages: How Much Can You Afford?
Nov 3, 2011 . Your mortgage payment consists of four components: principal, interest . A good rule of thumb is that PITI should not exceed 28% of your gross .
http://www.investopedia.com/articles/pf/05/030905.asp

4 Different Rules of Thumb For How Much House You Can Afford ...
Jan 2, 2007 . By definition, a “rule of thumb” is meant to be a greatly simplified . For a 30-year fixed mortgage with a rate of 6.25%, a monthly payment of .
http://www.mymoneyblog.com/4-different-rules-of-thumb-for-how-much-house-you-can-afford.html

Step 1

25 Useful Financial Rules of Thumb
Mar 9, 2009 . A rule of thumb is a general guideline, an easy way to approximate a . Is a Money Merge Account a Good Way to Pay Off Your Mortgage? (795) .
http://www.getrichslowly.org/blog/2009/03/09/25-favorite-financial-rules-of-thumb/

Step 2

Don't make yourself house poor
Feb 28, 2002 . Cavazos's rule of thumb is that the house payment -- principal, interest, taxes and hazard and mortgage insurance -- should add up to 28 .
http://www.bankrate.com/brm/news/mtg/20020228a.asp

Step 3

How much home can you afford? Use our simple calculator
If you won't live long enough to pay off the mortgage . Here's the super-quick rule of thumb: Most people can afford a home that costs up to three times their .
http://michaelbluejay.com/house/howmuchhome.html

How Much House Can You Afford?
Mar 5, 2010 . Your Maximum Mortgage Payment (Rule of 28): The golden rule in . A quick rule of thumb from when I worked in real estate was that the .
http://www.moneyunder30.com/how-much-house-can-you-afford

Tips & Warnings

  • Figuring Out How Much House You Can Afford to Buy
    Nov 1, 2011 . The second rule of thumb is that your monthly housing related expenses (i.e., mortgage payment (principal + interest), real estate taxes, and .
    http://www.moolanomy.com/633/figuring-out-how-much-house-you-can-afford-to-buy/

About the Author

When and How to Refinance Mortgage -- Mortgage Professor
But beware! The break-even period is not the cost of the new loan divided by the reduction in the monthly mortgage payment. This widely used rule of thumb is a .
http://www.mtgprofessor.com/A%20-%20Refinance/when_does_refinancing_really_pay.htm