Home Affordability Calculator

Determining how much house you can afford before you start searching is a logical first step. What’s more, Islamic home financing ensures your mortgage will be sharia compliant and riba free. A home affordability calculator is a good tool to help you put together all of the costs and decide whether you can afford a home in your budget.

Here’s some information that you can use along with our calculator to make sure you get halal loans.

• There is a simple starting point. Calculating a homebuying budget is easier when you use the 28% rule. The numbers here aren’t complicated. This rule dictates that any mortgage should not be more than 28% of the monthly gross income your family has.
• Keep in mind that many mortgage lenders look at your debt to income ratio to decide if they will lend you any money. Here’s a good definition that can help you understand this term. Basically, this number measures how your income stacks up against your ability to pay back your debt.

When you’re looking at calculating how much you can afford in a home, there’s other costs associated you need to take into account.

Upfront Costs

These can include a variety of different things like upgrades, applicable taxes and closing costs. Ijara Community Development Corporation (IjaraCDC) is the Islamic home financing method that adheres to sharia guidelines.

Our method is funded by traditional brokers and lenders. Our system offers benefits like competitively priced financial options. The system also fits within traditional banking models.

Affordability

Our home affordability calculator will help you decide how much you can spend. Reading this article will also fill you in on some other things like rolling costs that are associated with homeownership. These include things like general maintenance, taxes and utilities as well as insurance and any applicable condominium fees.

When you are considering the affordability of a new house, it’s important to be realistic. Considering the size and condition of the property will help you to make the right choice.

Keep in mind that bigger isn’t always better. That’s especially true for first-time homebuyers. You’ll want to avoid having heating and cooling costs break your budget.

Renovating?

If you’re looking at renovating, it’s a good idea to have an expert estimate what it would cost. If you’re planning on doing it by yourself, you should be realistic about the time it will take and your own skill set.

Ask to see the utility bills before you make any final decisions. Don’t let the American dream of homeownership become a nightmare because you’ve miscalculated. If you’re a first-time homebuyer, you need to make sure everything is affordable.

 Getting halal loans is an important part of being happy with any purchase. The system we put in place ensures that everyone involved will benefit from the process and all the transactions are safe. All the information you need to make the correct choice is available on our website. A home affordability calculator can start you off in the right direction.