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Buying Power

What's My Buying Power And What Does It Mean For My Future?

There are a lot of people that need to get a loan to buy a home or something else. This is a fact of life, but what many people don't realize is that they have buying power they need to know about. What's my buying power? That is a question that is going to be answered here along with the ways you can use to determine your power.

For anyone that hasn't heard of this term before, it is basically, the amount of money you will be able to borrow for a loan. Now, the best way to figure out what your power is, is to use a buying power calculator. Where can you find a calculator?

There is one on my site called a mortgage calculator that you can use. Any interest calculator determines your monthly payment the same way. It's just an interest calculation over an amount of years. That means you can use it for your auto loan, college loan, mortgage loan and even a personal loan or credit card payment.

Your buying power is a little bit different because there's another step after you determine your monthly payment. Assuming it's $1,000 per month, you have to use a mortgage calculator to see what amount equals that monthly payment. Plug in the current interest rate and then play around with the mortgage amount until it gets close to the $1,000 per month.

One more thing to remember is when figuring out your actual buying power you have to include taxes, insurance, condo fee and any other new monthly amount. The reason is because ou can afford an extra $1,000 per month, so you need to include all your expenses to make sure you don't start living in debt.

Now, when online, it is always a good idea to research more about what this power means to you. Don't try getting any loan without because this is a mistake. It is always better to know what the amount of money is that can be loaned to you before trying to get it. By filling in some simple numbers into the calculator, it is easy for anyone to figure this.

For the people that do not have good purchasing power, getting a loan can be very difficult to do. Don't just assume that this is not something important to know about because this can be a costly mistake if you get into a loan without being informed about everything.

Always take time to find and use a calculator to determine the answer to the question what's my buying power. Trying to get a loan without knowing what your buying power is, is a mistake that too many people make. Don't make this same mistake because you will end up regretting it. Plus, it will give you an idea up front if a loan is even possible for you.

Things To Remember About Your Buying Power

1. Always do the calculation before going to the bank to have a knowledgeable discussion with them about how much money you're able to borrow. This will also help you from getting over excited about buying a home when you might not be able to based on your power.

2. Using a mortgage calculator will help you with your mortgage payment details. It will show you how much of a home you can afford based on your extra monthly income.

3. You're buying power doesn't stop at buying a home. It tells you how much you can afford per month and even though it might be $300 then you can afford more on your credit card, or get a personal loan. This will build your credit score and creditbility with the bank if you pay it on time.

4. The more of a down payment you give the bank, the less you have to borrow, so it increases your buying power. If you get a loan for $100,000 the monthly payment would be higher than if you put down $20,000 and got a loan for $80,000. So you can afford more per month.

 

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