7 safe borrowing tips to keep debt in check
Even though banks are squeezing their mortgage loan limits, it's still possible to take on too much house. Don't be tempted into borrowing the full mortgage loan amount that the bank offers, Maurer says.
Most mortgage companies will let you take out a mortgage loan equal to 30 percent to 35 percent of your monthly budget, and he advises keeping those costs below 25 percent.
Maintenance, property taxes and homeowners insurance costs also should be factored into your housing budget, says Nessa Feddis, vice president and senior counsel for the American Bankers Association in Washington, D.C.