How Much House Can I Afford - Mortgage Affordability Calculator
Forget traditional mortgage qualification rules-of-thumb like 28% or 36% of earned income. These rough guidelines don't accurately answer the "how much house can I afford" question because too many other financial variables are ignored.
Instead, use this mortgage affordability calculator to convert what you currently pay in rent (or could afford to pay in rent) into the equivalent mortgage payment. By using actual cash outflows (rent) and current interest rates you get a more realistic perspective on how much mortgage you can afford.
Are You Ready For A Home Purchase
Are you at a point in your life where you’re considering of buying a house? If so, you’re probably hearing advice from friends, family, co-workers, and maybe even strangers. Some maybe telling you that now is the best time to buy a house while others are telling you to wait.
Buying a house is both exciting and at the same time scary. The fear is understandable. It is a major emotional decision that takes a lot of planning and research, and careful budgeting. You will need to consider the savings you have, as well as your monthly income and expenses. If you’re convinced that now is the perfect time for you to buy a house, you need to think carefully whether you can afford it. A good way to find out how much you can afford to spend on a property is to use the actual cash outflows you pay for renting your home and the current interest rates in your calculation. To help you do your sums, use the Mortgage Affordability Calculator above.
Signs That You Are Ready To Buy A House
Making A Decision To Buy A Home
Most homeowners buy without fully preparing for the added responsibilities. Homes are never free of problems. Homeowners always face ongoing responsibilities and repairs, especially if they buy older houses. Before you decided to buy a house, it is important to make a calculated decision. The mortgage affordability calculator will help you determine how much you can afford to buy.
Aside from the financial responsibility, there are so many things that go into a home-buying decision. You cannot just depend upon friends, real estate agents or lenders to tell you whether you are ready to own a home. The decision is yours whether to buy a home or not.
Mortgage Affordability Calculator Terms and Definitions
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