You NEED THIS Income for a $1.5M Home! 3 Rules to Know NOW
Did you know affording a $1.5 million home could require an annual pretax income upwards of $345,000? This staggering figure highlights the significant financial hurdles, often necessitating a jumbo loan, which comes with higher interest rates and stricter qualification standards than traditional mortgages. Beyond the hefty down payment, you'll need to budget for substantial closing costs and ongoing expenses like property taxes and maintenance, which can add tens of thousands annually. Lenders typically evaluate your eligibility using rules like the 28/36 debt-to-income ratio, meaning your housing payment can't exceed 28% of your pretax income. Understanding these complex requirements is crucial before diving into the high-stakes housing market, so be sure to subscribe to our channel for more essential financial insights.
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