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The acceptable limits for these front and back ratios vary from lender to lender and from real estate market to real estate market. But as a rule of thumb, you can consider 28% for an acceptable front ratio and 36% for an acceptable back ratio.
Once you have determined the monthly amount that can be devoted to the above costs, a calculation can be made to see how much of a loan can be secured. It is determined by establishing how many years you want the loan for and what interest rate the loan might be for.
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