October 2017

Your monthly mortgage payment

Before you even start shopping for a home, take some time to make sure your monthly mortgage payment fits within your lifestyle and budget — even if you're already prequalified for a mortgage loan amount.

Many people may underestimate the full impact of their daily spending habits. Those "little expenses" — like lunches and dinners out, or that daily cup of joe — can really add up. So how can you know what makes for a "comfortable" mortgage payment?

To start, compare your current spending with this infographic, which gives a good idea of how to allocate your income each month by percentage for each category.

How to allocate your monthly income:



Knowing how much you should be spending in different categories can help you identify areas where your spending habits may be getting in the way of your homeownership dreams.

For more information and tips on how to set a budget, visit Better Money Habits.

Mortgage loans to fit your needs
Once you have your home buying budget set, you can start shopping around for a mortgage loan that's right for you.

Bank of America offers a wide range of mortgage loan options designed to fit your unique situation. Choose from a variety of lending solutions including loans for higher-valued homes, doctor loans, FHA loans, VA loans and the Affordable Loan Solution® mortgageFootnote1 for modest-income buyers.

You can also search for cost savings and down payment programs in your area through the Bank of America Down Payment Resource Center.Footnote2

Contact me to learn more about all the options available to you.

 

1Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-value >95%, any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education may be required. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits apply.

2Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, or repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest, and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply.

More from this month's issue