Owning a home is the American dream, yet often people discover that it is becoming unaffordable.  A principal mortgage is the first mortgage taken out on the property.  Borrowers can increase the amount they need to borrow by reducing any long-term debts. Another way is to find a co-signer for the principal mortgage. A co-signer's income is included and they become legally obligated to fulfill the mortgage terms along with the borrower. Using other financing options that require a lower down payment can also help.

How expensive a principal residential mortgage you can get depends on how much you can safely afford to borrow. How much you can borrow again depends on four other factors: assets, income, debts, and the mortgage interest rate advertised by your region mortgage firm. Understand the lending limits when you look for a principal residential mortgage from any of the region mortgage firms.