Do you consider the possibility of buying a home? In that case, you need to start saving and mark yourself healthy financial habits month by month. So then we will tell you how much money you should allocate to the mortgage to get airy every month, without feeling drowned with so much expense.
What percentage of the salary allocated to the mortgage
At the time of applying for a mortgage there are two options: to establish a high monthly payment to finish paying it as soon as possible or to go little by little even if that implies being 40 years paying for the house.
The important thing is not the time you are paying the mortgage, but doing it the right way, based on your possibilities, which might not be the same now that in 20 years.
In order for you to pay the mortgage without problems, you must have more income than expenses each month. It is the main golden rule to follow if you don’t want to end up in a bankruptcy situation. But in addition, there are other rules that will allow you to pay the mortgage with minor difficulties.
Saving 10% of the monthly net salary is not something that all people can afford. However, whenever possible, it should be carried out to create a mattress in case one comes upside down.
What percentage of savings to allocate to the mortgage? The maximum percentage of salary that you must allocate to the mortgage is 30%. That is, if you earn 2,000 euros per month, the ideal is that your mortgage does not exceed 600 euros per month. However, if you want to arrive more quiet / at the end of the month, you can lower the percentage to 20 or 25%, even if that means paying more years.
Choosing the amount to be paid every month depends only on you, on your preferences. But you should never exceed 30% of your monthly salary, since the rest you need to meet fixed and recurring expenses such as water, electricity, internet, food, contingencies, etc.
On the other hand, it is also important to choose a home that at all times fits your possibilities, both short and long term. So taking into account these tips, surely you have no problems to assume the fees.
I cannot assume such a high mortgage payment: what do I do?
In the event that your financial situation is complicated, there are solutions that you can take immediately to save time. For example:
- Defer purchases
- Ask for a loan
You may be able to postpone some purchases. That is, instead of paying everything at once, many stores give the option to finance them. This way you can feel less drowned for a few months and get ahead.
Another option is to apply for a loan. Through Good Finance Loans you will be able to access the best financial products designed for you, to get out of any pothole that occurs without warning. Totally independent and 100% online: no paperwork, no payroll …
The Good Finance app is also your great ally!
Do not forget that if you download and install the application to control expenses of Good Finance you can organize expenses and start saving more month by month. An essential fintech app that will help you pay off the mortgage better.
Taking into account all these tips, surely you have no problem paying the mortgage every month. To want is power and you just have to become aware of the importance of not exceeding yourself by spending more than you owe. Just keep in mind the rules we mentioned and you will get it.