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.
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How Much House Can You Afford?
Are you thinking about buying a house and getting a mortgage?
If so, you’re probably hearing advice from friends, family, co-workers, and maybe even strangers. Some might be telling you that now is the best time to buy while others are urging you to wait.
The Mortgage Affordability Calculator will show you the mortgage you can afford based on a rent payment you can make. Instead of using rules-of-thumb percentages, the Mortgage Affordability Calculator tailors the results to what you can actually pay.
But before you buy, make sure you’re truly ready . . . .
Signs That You Are Ready To Buy A House
The math is important, but consider all factors at play before you buy a house. Here’s how you know you’re ready:
There are other important, non-financial considerations too:
Think through these issues as you’re working with the Mortgage Affordability Calculator.
How To Find An Acceptable Monthly Payment
If you’re not sure what to enter into the “rent payment you can afford” box, that’s okay. Use the Budget Calculator to determine a proper housing allowance based on your income.
Also, start and maintain a budget that takes into account all your expenses. You don’t want to discover years down the road that some of your mortgage dollars could have been better utilized building up your retirement.
Most homeowners buy without fully preparing for the added responsibilities.
As a homeowner, you’ll always face ongoing responsibilities and repairs, especially if you buy an older home. Before you decide to buy a house, it is important to weigh your options. The Mortgage Affordability Calculator will give you a real-world mortgage amount you can afford.
Do your homework, be realistic, and buy a mortgage that’s right for you – in the right timing and for the right reasons!
Mortgage Affordability Calculator Terms & Definitions
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