Question 1

How much house can I afford?

Accepted Answer

Affordability is typically determined by the 28/36 rule: your monthly housing costs shouldn't exceed 28% of your gross income, and total debt payments shouldn't exceed 36%. To get a personalized estimate based on your income, debts, and down payment, use the PraxisCalc Home Loan Calculator.

Question 2

What is a good mortgage rate?

Accepted Answer

A 'good' mortgage rate depends on the current market, your credit score, loan term, and down payment. Generally, a good rate is one that is at or below the current market average for a borrower with your financial profile.

Question 3

How much do I need for a down payment?

Accepted Answer

While 20% is the traditional recommendation to avoid Private Mortgage Insurance (PMI), many conventional loans allow as little as 3-5% down. Government-backed loans like FHA may require 3.5%.

Question 4

What is compound interest?

Accepted Answer

Compound interest is 'interest on your interest.' It is the process where the earnings from an asset are reinvested to generate their own earnings. To see its powerful effect on your savings over time, use the PraxisCalc Compound Interest Calculator.

Question 5

How much do I need to retire?

Accepted Answer

A common rule of thumb is to have 25 times your estimated annual expenses in retirement. This can vary greatly based on your lifestyle, health, and retirement age. The PraxisCalc Retirement Calculator can help you create a detailed and personalized savings goal.

Question 6

How to improve my credit score?

Accepted Answer

To improve your credit score, focus on these key actions: 1. Pay all your bills on time. 2. Keep your credit card balances low (below 30% of your limit). 3. Avoid opening too many new accounts at once. 4. Regularly check your credit report for errors.

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