A graduate of Tulane University, Eric Hymowitz owns and runs ROC Homes, a Houston-based company that manages the construction of private residences throughout Greater Houston. Since Eric Hymowitz founded ROC Homes, the core philosophy has not changed and remains to provide the local population with quality, affordable homes with desirable features.
When thinking of buying a house, there are many things to consider. Here are three financial factors to mull over.
1. Mortgage interest rates
To own a house requires putting down a substantial down payment. Rates across the US are low right now, and you can leverage the affordable borrowing rates to invest in a house through a smaller down payment.
2. Your debt-to-income ratio
A mortgage lender applies the debt-to-income formula to determine whether a prospective home can afford the monthly mortgage payments. Although the FHA has set the desirable debt to income ratio in the US at 43 percent, it’s not so much about the lender but more about how much you can manage to pay without undue stress.
3. The ancillary costs
It is not uncommon for a new homebuyer to like a house and yet fail to consider the costs associated with running it. Known as ancillary costs, they include items that may need replacing, such as the roof, gutters, the HVAC unit, and appliances.
