How Much Money Can Be Borrowed for a Home Loan?
Mortgages are loans from banks that allow borrowers to purchase homes. These loans usually last between 10 and 30 years. As an assurance that the loan will be paid back, the borrower offers the home he is purchasing as collateral, something that can be seized by the bank if the borrower fails to make the payments. Because of the size of the loans, banks use several ratios to determine how much a person can afford to borrow.
