What mortgage can I afford
If you do not have a regular income or simply do not want to deposit your salary in the same bank where you ask for financing, your best option is to get a mortgage without a salary, but is it really viable?
The first scenario (and the most advantageous when it comes to obtaining financing) is that you have a fixed contract and that you earn a salary every month. In that case, you may not want to ask for a mortgage in the bank where you receive your salary, for example, because their offers do not seem interesting to you, if so, the banks may not refuse to grant you a mortgage without a direct deposit of your salary (the new mortgage law prevents them from closing the doors because you do not comply with such a requirement), but they could charge you a higher interest rate than those customers who do respect this requirement.
If you are self-employed, you will most likely not be able to prove that you have a regular paycheck. However, that does not mean that you will not be able to get financing for your future home, especially if your business is doing well.
What house can I buy with my salary calculator
It is not a trivial issue, because a downward calculation can make us renounce to a better house or apartment without necessity. It is important to know our debt capacity to choose the mortgage that best fits our circumstances.
The amount of how much we are going to be able to allocate to the purchase of a house will be determined by what is called debt capacity, that is to say, the amount of income that a citizen can allocate to the payment of debts.
In the case of a mortgage, most experts recommend that the monthly payment should not exceed 30% – 35% of net income, with the remaining 65% being used to satisfy other needs, such as food, clothing, leisure and savings.
Thus, for example, a worker with an income of around 1,000 euros could assume a mortgage of around 350 euros per month, while another person with a net salary of 2,000 euros could face a mortgage of up to 700 euros per month.
– In a general overview we can see that incomes slightly below 2,000 euros can only manage to get a mortgage of 100,000 euros, those of 3,000 euros a mortgage of 200,000 euros, and only salaries above 4,000 euros can afford to open a mortgage of 300,000 euros.
– Once we know what is the maximum loan that the bank can grant us, we will find out what is the most expensive house we can aspire to. In general, the bank will lend us 80% of the appraisal or sale value of the property, so if with our salary we can ask for a mortgage of 100,000 euros, we will be able to buy a house of 125,000. The 20% that the bank will not finance us we will have to have it saved, in addition to a 10% in concept of expenses of opening of mortgage and sale and purchase.
Anonymous22 February 2011, 9:57When the prices are still at that level is because as Cascos said in his day there is someone who buys them. This is a free market. Maybe those who sell them also do not have much need to sell them and just hope to give the ball of his life. See for example the banks.
How much mortgage can I pay with my salary
Buying a home is an important initial outlay for the pocket that many cannot afford. And the fact is that the acquisition of a house requires having saved, at least, 20% of its price. Currently, the high price of rents and the precariousness of labor contracts has meant that most young people who are considering buying a home have to discard the idea due to lack of resources.
This is why applying for a mortgage with 100% financing is a complicated task for the buyer. However, there are several ways for those who do not have the necessary savings. Some of the keys are found in the appraised value of the property, the solvency of the client or the financial intermediation.
The initial outlay involved in acquiring a home is one of the biggest drawbacks encountered by the buyer when deciding whether to buy or rent. Given that banks usually grant a maximum of 80% financing, most customers must have a cushion of at least 30% of the value of the property. And the fact is that, in addition to needing the 20% that the bank does not lend them, they must also face a series of initial expenses and taxes. These include: