Intro to Housing
Overview
Buying a home is an important part of a successful financial future. The loan you take out to buy a home—your mortgage—will probably be the biggest and longest-lasting of your life, which makes it crucial that you understand the basics. From saving for a down payment to budgeting for maintenance, there’s a lot more to buying a house than just plugging numbers into a mortgage calculator.
What is the size of a typical mortgage down payment?
More than 20 percent of the home value
Down payments are typically not required for a mortgage
5 to 20 percent of the home value
33 percent of the home value
What is debt-to-income ratio?
How much debt you have divided by your take-home pay
Your monthly debt payments divided by your pre-tax monthly income
How much debt you have divided by how much debt is available to you
How much debt is available to you divided by how much debt you have
What is gross income?
Your income from investments
Your income before taxes and benefits are subtracted
Your income after taxes and benefits are subtracted
Your income from consulting or side jobs