The Economic Consequences of Homelessness in The US

hiring an attorney to encourage everyone in the neighborhood to maintain the exterior
appearance of their homes. While an increasing number of lenders include association
fees in the front-end ratio, it pays to remember that these fees are likely to increase over
time.
Furniture and Décor. Drive through almost any community of new homes after the sun
goes down, and you're likely to notice some interior lights illuminating big, empty rooms,
which you can see only because those big, beautiful houses don't have any window
coverings. This isn't the latest decorating trend. It's the result of a family that spent all
their money on the house, and now can't afford curtains or furniture. Before you buy a
new house, take a good look around the number of rooms that will need to be furnished
and the number of windows that will need to be covered.
Think Before You Buy
The cost of a home is the single largest personal expense most people will ever face.
Prior to taking on such an enormous debt, take the time to do the math. After you run
the numbers, consider your personal situation, and think about your present and future
lifestyle into the next three decades. Make an informed decision, and be sure to
purchase a home that you can afford without compromising your future.
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What Percentage of Income Should Be Spent on a Mortgage?
by Mindy Sitton-Halleck
A general rule in qualifying for a home mortgage is that your debt-to-income ratio be no
higher than 28/36 percent on conventional loans and 31/43 percent on Federal Housing
Authority (FHA) loans. Ratios above this may mean that you will be denied credit or
subjected to a higher mortgage interest rate.
Percentage of Income
These typical qualifying ratios are influenced by factors such as type of mortgage
product (30-year fixed, adjustable, etc.), borrower’s credit, downpayment and often the
collateral. This means no more than 28 percent (front-end ratio) of a borrower’s gross
monthly income should be used to pay the PITI payment (principal, interest, property
taxes and insurance). Your total debt-to-income ratio (back-end ratio) is your housing
payment--mortgage, property taxes, homeowners insurance--and your existing debts.
Types of Debt
Additional debt items that appear on your credit report include car and student loans,
monthly credit card payments and child support. Doctor and phone bills, and so forth
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