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Judy Minner

Judy Minner

Broker, Broker , CNE, GRI

C. (309) 645-8845    F. (309) 698-2248
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How Much Do I Qualify For?

If you would like more information or have any questions about how much to qualify for please Contact Us. Visit our Buyers Page or Sellers Page for more information about buying or selling a home or property.

How Much Do I Qualify For?When buying a home, it is helpful to determine the type of home you'll like and how much you can afford before beginning your search. Monthly housing costs shouldn't be more than 32% of your gross monthly income. Housing costs include your monthly mortgage payments (principal and interest), property taxes and heating expenses (PITH— Principal, Interest, Taxes and Heating). To get an idea of how much you can afford to pay each month for a home, multiply your gross monthly income by 32%.

When coupled with current outstanding loans, the total for your debt service should not exceed 40% of your gross monthly income. Some lenders may have slightly more liberal requirements or loan interest rates which may increase your purchasing power.

Mortgage interest, property taxes, loan fees or "points" are currently tax deductible (up to allowable limits). Points are generally deductible in the year paid. A point equals 1% of the mortgage amount. If you are in the 32% tax bracket, this is equivalent to receiving a 32% discount on your mortgage interest and property taxes. During the first years of the mortgage your tax savings are especially high because most of your monthly payment goes toward loan interest.

If you would like more information or have any questions about how much to qualify for please Contact Us. Visit our Buyers Page or Sellers Page for more information about buying or selling a home or property.

Information is provided exclusively for consumers' personal, non-commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

The data relating to real estate for sale on this web-site comes in part from the Internet Listing Display database of the Peoria Area Association of REALTORS®. Real estate listings held by brokerage firms other than this site-owner are marked with the PAAR logo and detailed information about them includes the name of the listing brokers.

The accuracy of all information, regardless of the source, including but not limited to square footages and lot sizes, is deemed reliable but is not guaranteed and should be independently verified through personal inspection and/or with the appropriate professionals.

Copyright © 2018 Peoria Area Association of REALTORS®., All rights reserved.

East Peoria Office
821 W. Camp Street
East Peoria IL  61611
(309) 698-5600
Real Estate License # 475.128283
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