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January 23, 2009, Newsletter Issue #318: Applying for a Home Loan

1

Tip of the Week

Mortgage lenders typically use three tests: 1) The monthly house payment including property taxes and insurance should not exceed 26% of gross monthly income; 2) All monthly debt payments plus the house payment should be less than 38% of gross monthly income; 3) The home buyer should have two to three months´ worth of payments in an emergency fund.



2

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