How Much Can I Afford?
Before you start looking at homes, it`s a good idea to find a target price range that you can afford. A mortgage lender will want to make sure you can qualify for the down payment, plus a monthly mortgage payment made up of principal, interest, taxes and insurance (PITI). In addition, just like in Canada, property taxes are based on the assessor’s valuation of your home. As a rule of thumb in California, expect to pay somewhere around 1.25% of your purchase price.
Interest rates and your personal finances will influence the amount of house you can afford. For a quick estimate of a monthly mortgage payment for which you may qualify use the following worksheet. You can also find a mortgage calculator for any home posted on the Windermere Web site at www.windermere.com. But remember, it`s always good to talk to a lender before you start shopping for a home. I can refer you to lenders suited to your specific financial needs.
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