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It is advisable to be wary of all these numbers. Borrow only how
much you need, however attractive the number game looks. Real estate
agents and lenders make more commission on bigger houses and will
naturally encourage you to borrow as much as you can.
Consider your own budget and lifestyle, and ensure you don't end
up with such a high mortgage payment that you can't put money away
for retirement or go for a nice vacation
Some debt counselors recommend that your total payment should not
be more than 28% of your net pay (after taxes), leaving you money
for a comfortable lifestyle as well as the other costs of home ownership,
such as repairs, maintenance, and higher utility bills.
It is also prudent not to buy a house that costs more than two
and a half times your current annual salary.
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