Can you afford to buy a home with credit card debt?

September 11, 2023

Can you afford to buy a home with credit card debt?

Can you afford to buy a $275,000 home with a $500/mo credit card payment?

As a result of higher prices, families and home buyers are relying on credit cards for everyday purchases more than ever. With household credit card debt recently passing $1 trillion, higher monthly payments are impacting homeownership affordability and a buyers overall ability to qualify for a mortgage. But not many people understand how you can qualify to buy a home with debt, so that’s what we’ll review here.

Q: Does your monthly credit card payments impact how much home loan you can get?
Y: Yes, here’s how.

This beautiful home is for sale at

705 S Main St
Ligonier, IN 46767

$275,000 asking price

If you make $70,000 per year, here’s how you know if you’ll qualify with a credit card payment of $500/mo:

$70,000 yearly income / 12
= $2,916 qualifying income

Your total mortgage payment + your credit card payment(s) cannot be higher than $2,916 each month.

$500 minimum monthly credit card payment(s)

+ $1,967 estimated total mortgage payment for the house
= $2,467 total

You CAN afford to qualify for the mortgage based on this scenario.

The same calculation is done for:

  • Credit cards
  • Car loans
  • Student loans
  • Personal loans
  • Child support
  • Alimony
  • Mortgages

How Interest Rates Affect Mortgage Payments

According to Mortgage News Daily, the average 30-Year fixed rate mortgage interest rates is 7.30%, and climbing. Based a lot off the 10-year Treasury bond, mortgage rates are at a big risk of continuing to go up as the 10-year Treasury recently broke out of a downward channel it had been in for decades. And while forecasting rates isn’t exact science, the Fed’s resolve to reign in inflation to a 2% increase is still very much happening. Any additional raises or pauses by the Federal Reserve will only move mortgage rates higher.

Some local banks post their mortgage rates on their website, but Bee constantly beats them, and sometimes by a lot.

With the cost of living rising much faster than wages, people are more concerned than ever about their interest rate and monthly mortgage payment. Home buyers who use brokers tend to get lower rates and payments than those who don’t. While a mortgage broker isn’t the best fit for everyone, most home buyers do get better deals going wholesale; just like buying groceries wholesale.

Home buying in Indiana

Indiana home buyers have more options than ever. With Bee Mortgage’s new office located at 207 S Buffalo St., Warsaw, IN 46580, in Kosciusko County, the connivence of low rates and fast closings are now available to first-time and experienced home buyers. With an easy option to apply for pre-approval online, in-person, or over the phone, Indiana residents can have to home buying advantage not offered with other lenders. Knowing what other local lenders offer their customers ensures Bee Mortgage customers have confidence in the low mortgage rates in Indiana.

While most people are pre-approved in mere minutes, others take longer if their income is more complex, such as those that are self-employed or have multiple streams of income. Lot’s of times two years tax returns are needed in order to process a borrower’s loan application. Once approved, the home buyer receives a pre-approval letter stating how much they’re pre-approved for; and they can then go make offers on homes.

The reason you need a pre-approval letter is to show your agent, the seller’s agent, and the seller that you’re pre-qualified for the mortgage. And while there are other steps after the purchase agreement is signed by all parties, this is the first and most critical one. If you are considering buying a home but do not have an agent, Bee Mortgage works with tops agents in Kosciusko County and Warsaw, and can introduce you to one that can assist you every step of the way.

For homeowners refinancing a property, such as an investment property or their primary home, Bee Mortgage makes it easy with multiple ways to get a low rate mortgage quote. By offering HELOCs, homeowners that have a low rate on their primary mortgage leave it intact.



To see if you qualify for a streamline refinance, contact Bee at 855-626-1999 or apply here today


If you’re ready to make the leap into homeownership, contact us today! Our dedicated loan experts will walk you through every step of the way ensuring you get a low rate and close quickly!


If you’re looking for a streamline refinance to lower the rate and payment, apply here today or call 855-626-1999 and speak with one of our expert loan officers in your area!


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Bee is a leading Florida mortgage broker with over 10 Florida local offices that’s been featured heavily in the local and national news for its instant pre-approvals, low rates, fast closings, and new mobile technology. For more news and resources, click here.

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