Find out the salary you need to be able to borrow the sum of 100,000 dollars in the context of a mortgage.
The salary is a key element in a mortgage application because it will determine the amount of maximum monthly payments that can be spent each month to repay a mortgage.
Borrow 100,000 dollars: what salary do you have?
You should know that you can borrow up to 33% of your income, which means that a third of wages will be used to repay a mortgage. When the loan is requested by two people at the same time, we speak of a borrower and co-borrower, which increases the borrowing capacity since we combine the two salaries.
Here is the salary to have to borrow 100,000 dollars depending on the repayment duration:
- 10 years: $ 2,800
- 15 years: $ 1,800
- 20 years: $ 1,400
- 25 years: $ 1,100
- 30 years: $ 900
- 35 years old: $ 800
Choose the right duration to borrow 100,000 dollars
The shorter the duration, the higher the monthly payment to borrow the sum of 100,000 dollars, so you have to leave for a period compatible with your income, knowing that the interest and costs of the mortgage can play a role in these estimates. This simple calculation does not take into account the cost of the credit, so you have to validate the amount of salary in a mortgage application.
Different durations will be proposed by banks and credit institutions, these durations take into account the repayment capacity of the borrower but the rates may vary depending on the organizations, it is, therefore, necessary to choose a duration consistent with the financing project, and in particular, take into account any work to be included in the mortgage or not. Note that the maximum debt ratio is 33%, it is advisable to preserve some leeway to take out any other loan if necessary, this ensures more financial comfort.
Simulate a mortgage loan of 100,000 dollars
After this first salary estimate, it is strongly advised to carry out a mortgage loan simulation, it is simply a question of filling out a loan request specifying the desired amount of 100,000 dollars, as well as the financial information.
After validation of the form, several loan proposals are proposed taking into account the salary of the borrower with different durations. This allows firstly to have a more precise estimate of the monthly payment proposed but also to be able to compare the rates of the different credit institutions and banks.