How to Determine What Mortgage You Can Afford

how to determine mortgage

Rid yourself of all debt, and fund an emergency account equal to three to six months' worth of living expenses. Ramsey believes you must do this before you even consider looking for a mortgage. If you lose your job, having no debt and having cash in the bank will help you hang on to your home. Plus, this relatively pristine financial record looks good to prospective lenders.

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