Editing Home Mortgage Information
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*[http://www.fool.com/personal-finance/home/2003/09/25/how-much-home-can-you-afford.aspx?source=isesitlnk0000001&mrr=1.00 Motley Fool Webpage on Brief Info on Mortgages] *[http://www.fool.com/how-to-invest/personal-finance/home/index.aspx Motley Fool Home Center] *Front end ratio **A common rule of thumb is that they'll allow you to pay around 30% of your gross income toward your mortgage payment every month. This is known as the front-end ratio. In this example, 30% of $4,000 is $1,200 a month **If 100K, up to 2.5K *Back-end ratio (or debt ratio) **Your debt ratio, or back-end ratio, on the other hand, is $400/$4,000, or 10%. That's not bad. They don't want more than around 40% of your gross income going to total debt -- mortgage, credit card interest, pensions and other payments -- and in this case, your payments add up to 39%. (These ratios can vary somewhat; the ones given here are just examples). **Debt > than 10% so feel should be closer to 2K *[http://310yv.myerswebsites.com/frame_calc_mortgage_payment.html Mortgage Calculator Webpage]
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