If you are looking to buy an affordable middle-class home in northeastern Indianapolis, Fishers, Noblesville, McCordsville, Carmel, or the Westfield area, good luck!
It’s getting increasingly tough to find quality housing for growing families and/or seniors that doesn’t require a lot of maintenance and upkeep – and is reasonably priced.
Taking a look at RoseLake Estates in Pendleton, just 15 minutes north of Indy’s northside, can be a lifesaver. Our new and pre-owned manufactured homes are exceedingly well priced – many with all-new upgrades and low mortgage rates and property taxes.
Since the last thing you want to do is over-extend your budget on housing, here’s why RoseLake Estates management recommends new home buyers follow the 28/36% rule of home buying affordability.
The 28/36% rule This rule of thumb is the tried-and-true home affordability guideline that establishes a baseline for what you can realistically afford to pay every month.
- Most financial advisors recommend that potential homebuyers spend no more than 28% of their gross monthly income on housing expenses
- 36% on total debt (including housing as well as student loans, car expenses, and credit card payments.)
How do you calculate this? To calculate how much 28 percent of your income is, simply multiply 28 by your monthly income. If your monthly income is $6,000, then multiply that by 28. So: 6,000 x 28 = 168,000. Next divide that total by 100, giving you $1,680, which would be your absolute top monthly mortgage payment.
And of course, staying well under that amount helps keep stress levels low, and allows you and your family more flexibility in other spending areas.
Get the best possible interest rate A low interest rate can save you thousands of dollars over the cost of your loan. Here are a few smart things you can do to make your application attractive and low-rate worthy. (We’d be glad to recommend a few mortgage lenders in our area.)
- Work on your credit score months before you shop for a home.
- Look up and apply for your free annual credit report at one of the big three agencies, Equifax, Experian, and TransUnion.
- Ideally, you’ll get the best rate with a credit rating of around 800.
- Carefully review your report and note any incorrect information as well as negative marks.
- If you find mistakes on your report, you will have to prove that the claims are wrong by providing payment history or other evidence.
Down Payments help In general, the larger your initial down payment, the better your mortgage rate. Of course, it’s not always easy or practical to save up a large down payment. There are many first time home-buyer, government, and needs-based down-payment assistance programs available for buyers with no or low down payments.
Bottom line? Come take a look at our homes, all affordably priced, and move-in ready. RoseLake Estates could well be the answer to your housing dilemma.