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"How much home can I afford?" is a question most home buyers
ask.
While there are varying thoughts on this a common rule of thumb is that your
monthly housing expenses should not total to more than 33% of your gross (i.e.
before taxes) income. That includes your mortgage payment, property taxes, and
home owners insurance. So take a third of your current income and use that as
the maximum amount that you'll be able to afford.
"How much will my monthy payment be if I buy that house?" is the next
frequently asked question by a prospective home buyer.
For the answer to that we'll need to use a calculator... or, more
appropriately, the mortgage calculator that we have provided below. Enter the
price of the house, the intended length of the mortgage, the current interest
rate (estimated here for you), and (optionally) your property taxes and
insurance costs. Once you've entered that information click on the button and
we'll estimate your monthly payments for you.
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