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Success4UandMe.com
~~ part of the Success!Real Estate network ~~

Gilda McGonagle ~ Realtor


Just click on "Search the MLS" at the main menu to get started on your home search!


Questions? Call or Text me! 781.254.9468

Success4UandMe.com

Part of the Success! Real Estate network!

Gilda McGonagle
Realtor

CONTACT ME:

Phone: Text: 781 254-9468
Cell Phone: (781) 254-9468
Fax: (781) 828-5887
Email: Gilda@Success4UandMe.com


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Do Some Soul-searching Before You Commit.
Regardless of what you are pre-approved for by a bank or mortgage company,
a mortgage payment for a ‘too-big’ house can leave you with too little money for other
goals: retirement, vacations, college funds for the kids.
Worse, it can leave you vulnerable to foreclosure and bankruptcy.


How Much is Too Much?
Only you know what you will be comfortable with, given your priorities in life.
Listen to that inner voice when you make your decision. So how much should you spend on a house?
The traditional limit, still used by many lenders, is 28% of gross monthly income.
Some financial advisers recommend capping your outlay at 25%; others suggest stretching to 33% or more.
But these limits only apply if you don’t have a lot of other debt.


Determine Your Expenses
The best way to figure out how much house you can afford is to do your own math.
After calculating contributions to various goals, such as your 401K or IRA and your kids’ college educations,
factor in yearly home repairs at about 1% to 3% of the home’s total value annually, depending on its age,
and the yearly costs for utilities (heat/electricity). Then see how much of your remaining income is allocated
to mortgage payments, including insurance and taxes and do a temperature check.



Better to be Conservative
Too much math? Here’s the abbreviated version: Just use the use the 25% lid.
You may want to go even lower if: a) you plan to have children and envision a one-spouse income post baby;
b) you have an expensive hobby, like travel; c) your income varies considerably.
However, you can stretch further if: a) you’re absolutely debt-free; b) you don’t have to worry about retirement;
c) you’re pretty sure your income will climb steeply in coming years.



Don't Get Discouraged
Whatever you do, keep in mind that nothing is forever. Your first home very likely will not be your last.
Many buyers experience analysis paralysis waiting for the perfect home, terrified of making a mistake.
Make housing moves similar to the moves you make in your career – each a stepping stone to the ultimate goal.
Have fun and be comfortable. Your home can be your welcome retreat and safe haven.
Don’t make it your biggest financial problem and the source of regret. Be Happy!


   


Servicing: Avon, Bellingham, Braintree, Brookline, Canton, Cohasset, Dedham, Dover, Foxboro, Franklin, Holbrook, Medfield, Medway, Millis, Milton, Needham, Norfolk, Norwood, Plainville, Quincy, Randolph, Sharon, Stoughton, Walpole, Wellesley, Westwood, Weymouth, Wrentham