How Car Payments Reduce Your Loan Amount
Did you know that if we assume you earn $5,000 per month and you have a car payment of $400 mo, at current interest rates (around 8% on a 30 year fixed rate loan), you would qualify for roughly $55,000 less than you would have had you not had that $400 a month car payment (ouch!) It happens all the time. Whenever weighing the thought of buying a car versus purchasing a home be sure to consider the benefits of buying the home first as it typically is a much more important purchase when considering your future and your overall financial well being.
See Section 3 — “Things to avoid before purchasing a home”
Number 1– “Major Purchases“