Home Much Home Can You Afford?

Before we go out looking for a home, it is also best to get a mortgage pre-approval. Our affordability calculator will provide some excellent information before you even contact a mortgage counselor.

First tell us how much you make, how much you've got for a downpayment, and your debt. The results will give you a price range depending on how aggressive you want to get.

To arrive at an "affordable" home price, we followed the guidelines of most lenders. We've allowed a total debt-to-income ratio of no more than 36 percent. And we have assumed a housing payment-to-income ratio of 28% for our conservative estimate, and 33 percent for the aggressive one. Before buying, however, keep in mind your other savings needs.

We've assumed a 30-year mortgage term, annual property tax of $3,500 and homeowners insurance of $1000. And we do not factor in private mortgage insurance, which you'll owe if your downpayment is less than 20 percent of the purchase price. It averages from $50 to $80 per month. Plug in your own numbers for more tailor-made results.

Enter Mortgage Information
Gross annual income:	$
Downpayment amount:	$
Monthly debt: (eg. student loan, credit cards)	$
Mortgage rate:	%
Annual property taxes:	$
Annual homeowner insurance:	$

Results
	CONSERVATIVE	AGGRESSIVE
Minimum house price:	$
Loan amount:	$
Monthly mortgage payment:	$
Taxes/homeowner insurance:	$
Total monthly payment:	$