Real Estate Forums

Alka · 02-13-2008, 04:25 AM

Some banks cap the upper limit of a home loan according to the monthly or annual income of a customer. Some banks offer about 75 to 80 percent of the cost needed for a particular venture. But with the proliferation of the numerous private banks, some of the leading players now even offer 100% financing. Financial experts always opine that the monthly repayments should not exceed 30% of a customer’s total monthly income.

fred333 · 02-27-2008, 07:38 AM

That is true. The buyer needs to have some money to live on.

Orlando MLS · 03-05-2008, 12:48 PM

That's Gross income. Think about it - even at 30% that doesn't leave a whole heck of a lot to eat with. Especially if you have three kids a car payment and a couple of credit cards. I'm a big fan of downpayments - the more you can put down, the more affordable the house can be. Don't over extend yourself....this mentality is CRAZY.