Chapter 28. Buying a Home

Equity- market value

mortages

Banks need- applying for the mortage.

“prequalify”- 28/36% rule

Mortage payment can not exceed 28% of your gross monthly income.

Debt to income ratio- cannot be 36% of your monthly income.

Factors to be considered:

1. monthly income expenses

2. credit history

3. source of down payment

4. value of the property

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