How Much House Can You Afford?
Before you rush out to buy a new house, it helps to know the price range to shop in. You don't want to fall for a particular home, only to realize afterwards that the monthly mortgage payment is straining your finances. This form helps you determine what you can afford based on the numbers lenders use to assess your financial wherewithal.
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Properties in your Price Range
Some things to keep in mind: Raising your monthly income isn't easy; but you can afford more house by paying off debts beforehand, mainly credit-card debt. That will free up income you can earmark for a mortgage. Mortgage lending is a competitive business, and if you shop around you can find a lower rate, which will increase how much house you can afford, or lower the payments on the home you want. Finally, just because you can afford, say, a $200,000 house doesn't mean you should necessarily buy a $200,000 house. If you have other priorities, such as saving for retirement or a child's education, then you might consider a less expensive home to fund those other priorities without feeling pinched financially every month.
(Affordability Calculator is estimated only. Please contact a mortgage specialist to help you determine your affordability.)