b'MB-106 2022-23 Relo - Single Page_MB-706.qxd2/14/20222:29 PMPage 67FINANCING YOUR HOME MOVEMKEGiven the competitive nature of the mortgage business,banks and other lending institutions offer a variety of products that have made home buying simpler.Mortgages come with either fixed or variable interest rates. Fixed rates are typically one or two percentage points higher than variable rates, but the rate remains constant throughout the life of the loan. Variable or adjustable rate mortgages (ARMs) increase and decrease with the prevailing interest rates. Variable rate mortgages are best for homeowners who expect interest rates to decline, plan to stay in their home five years or less, or are confident their income will increase in the years ahead. To protect homeowners, variable rate loans have caps that limit how much the interest rate can increase. FINANCINGBuying a Home Many lenders have online worksheets to help you determine how much house YOUR HOME you can afford. Generally speaking, house paymentsincluding insurance and property taxesshould not exceed 28 percent of household gross monthly income (income before taxes). Total Average 2021 Home Sales Price: household debt (including credit cards, mortgage, auto and other loans) should Milwaukee County Ozaukee County Racine County not exceed 36 percent of monthly income. Homeowners who cant make a $210,000 (+10.5%)$375,000 (+10.8%) $215,000 (+3.1%) down payment equal to 20 percent of the sales price will likely have to pur-Waukesha Countychase private mortgage insurance, which Washington County $369,000 (+8.6%)$305,000 (+9.3%) can add $50 to more than $200 to the monthly payment. Buyers should consult a Realtor or mortgage banker to deter-mine what they can afford. @discoverMKE.com / discovermilwaukee.com 67'