Borrow and repay mortgage through profits from the Forex market

It’s very natural to possess the willingness to purchase a big home. Well, affordability is to be considered here. You can’t do anything you want if your limit of affordability doesn’t allow you. The most important question that should come to your mind when you’re thinking of getting a home in these times when inflationary pressures are running high is – mortgage how much can I borrow? This is the question that you need to ask yourself a million times if you have to. This way you’ll know whether or not the mortgage amount that you’re borrowing is going to make things riskier for you.

Mortgage how much can I borrow?

A prospective homeowner is allowed to borrow mortgage on a property only if the property is worth somewhere between 2 and 2.5 times the gross income of the homeowner. Since it’s just a calculation and acts as a guideline, there isn’t a lot in here that should be paid attention to.

Aside from considering the aforesaid commonly used guideline, there are a few more important things that you need to emphasize so as to make sure things go right at the end of the day. The best thing would be to start with the lenders. It’s important to know what the lenders have in their minds as far as your affordability is concerned. This is important because lenders are known to use specific formulas and Debt-to-Income Ratios to get idea of how much mortgage their clients can afford. The following are the lenders’ criteria that you should consider:

• Front-End Ratio

• Back-End Ratio

• Down Payment

Once you’re done with the lenders, it’s time that you considered your personal situation. You need to set some criteria as well as start acting on the evaluation of your finances and preferences. The personal criteria are as follows:

• Income

• Expenses

• Lifestyle

• Personality

Aside from the lenders’ and personal criteria, there are a few more things that one must pay attention to:

• Maintenance and utility costs

• Furniture and decoration expenses

• Other fees and charges

All of the aforesaid point towards the fact that you won’t be able to do much without adequate funds. Since funds are a necessity and your existing source of income may not suffice, it’s time that you shifted your attention to investment areas that could help you make some extra money.

Forex trading

Speaking of earning extra bucks, there could be nothing better than investing in the Forex market if you know the rules of the game. As profits earned from the Forex market is mainly dependent on the changes in the values of foreign currencies, one stands to make a healthy income as an investor.

The most important thing that you must learn is that the Forex market can be as much dangerous and risky as it is profitable. The trick is to learn the rules of the game and get some hands-on experience so that you don’t end up losing your money at the end of the day.