What
amount should I establish for my monthly mortgage payments?
House hunting begins at home... with planning. Knowing your
affordable price range will bring your house hunting into
focus.
How much house you can afford depends on two things: how
much you can afford for the monthly mortgage payment, and
how much you can invest in the down payment. Monthly payments
include the principal and interest on the mortgage loan and
property taxes and insurance against fire and other hazards.
These four costs are often abbreviated PITI.
The key items are the size of the down payment, the amount
of the mortgage and the term – or length – of
the loan.
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