Regardless of whether the desire is to purchase property valued at $200,000 or $2 million, there are some basic questions that arise in the mind of the prospective home owner. For example, How much can I borrow? What will my monthly payments be like? What are the closing charges like?

As a general rule, most mortgage companies provide financing for up to 90% of the lower of the purchase price or value of the property. The amount that you can borrow, that is the principal sum, is determined by a combination of factors:

1. Your Income
2. Your Age
3. Level of Debt
4. Interest Rate
5. Principal Sum