Shopping for a home can be a very exciting time. But before you begin evaluating neighborhoods and housing options, you’ll need to know just how much you can afford to spend. This calculator is designed to give you an estimate of the amount of financing you can expect to get when you begin house hunting.
The results below show the down payment amount, the maximum home price, and the
monthly payment amount, based on the information you provided. Note that if you
can afford a larger down payment — or find a mortgage with a lower interest
rate — you will ultimately be able to spend more on a home.
This chart shows how much of your annual income will go toward paying your debts if you were to buy the highest-priced home you can afford based on the information you provided. Would too much of your income go toward debt? If so, you may want to consider paying off some of your existing obligations before buying a home.
When determining the amount you can borrow, lenders will typically prefer that your mortgage plus taxes and insurance not exceed 28 percent of your gross monthly income. In addition, lenders recommend that your mortgage, property taxes, insurance and all other monthly obligations not exceed 36 percent of your gross monthly income.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions.
© 2020 Broadridge Investor Communication Solutions, Inc.