Home Buying Power | Calculate

Example: $2,600 - $650 = Step 4: Use a Mortgage Table

Check what a $1,950 principal/interest payment buys at current rates. At a 6.5% interest rate, $1,950 supports a loan of approximately . Step 5: Add Your Down Payment Add your saved cash to the loan amount.

Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs calculate home buying power

Set aside 2%–5% of the home price for fees; don't use this money for the down payment.

Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. Example: $2,600 - $650 = Step 4: Use

Multiply gross income by 0.36 (36%) and subtract existing monthly debts.

To help you get a more accurate number, I can run specific calculations if you'd like to share: Your ? Your total monthly debt payments ? How much you have saved for a down payment ? Your approximate credit score range? Example: ($8,333 x 0

Standard for many first-time buyer conventional loans.