Affordability

How Much Can I Afford?

By March 7, 2019 No Comments
man holding a piggy bank, how much can i afford

How often do you ask yourself this question? First of all, it’s a very important question to ask and answer, no matter what it may have to do with specifically. You want to be asking this question. It shows that you are trying to live within your means and are being financially responsible, which is great!

There are some other questions you may be asking yourself that have to do with affordability, like “How much house can I afford?” or “How much mortgage can I afford?”. Discount Loans is here to help!

Solid Advice

There is a lot of good advice to be heard in regard to affordability. When considering debt, it is generally accepted that your debt payments should not exceed 30% of your monthly take-home pay. This is very sensible advice when considering other expenses you are sure to have including rent, food, and other bills.

It’s important to note that we are talking about what you are paid after taxes. Net income is what you should always base your budget on. Another great piece of advice is to do your best to become debt-free. When you are free of debt, affording a new home you want to buy becomes much easier. The last thing you want to do is sacrifice your future opportunities. Whether you are considering home-buying or otherwise, you shouldn’t bite off more than you can chew financially.

Discount Loans Can Help

We love being able to help everyday people. Finding the solution that best works for you, whether that is in regards to a home loan or refinancing, is our goal. For starters, we have an affordability calculator that you should put to use!

You will enter your maximum monthly payment first but don’t forget to consider the above advice in terms of debt. After you have calculated the maximum payment you can afford monthly, you can enter the interest rate and loan term. Lastly, you’ll enter the start date of your loan. After you have entered all of this information, our handy tool will calculate how much you can afford to borrow. It’s as easy as that.

We’re Here to Help

We encourage you to use any of the calculators we have provided to do some research on your own. Other than affordability, we offer calculators for refinancing, renting vs buying, and mortgage. However, we are aware that sometimes it can be difficult to make sense of all this information. That’s where we come in!

There are several ways that you can reach out to Discount Loans for help. Contact us here on our website through our contact submission form or live chat. If you would prefer, you can give us a call at 1-855-DISCOUNT. Either way, we look forward to hearing from you and figuring out what solution is best for you.

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