Where To Begin
Checking Credit
Research Before Choosing A Neighborhood
Check the Zoning
New Home Or Resale?
Think You Don't Need Flood Insurance?
Used Homes
Do I Need Title Insurance?
Be Alert For Sellers’ Tricks
Recruiting The Experts
Choosing A Real Estate Agent
The Foreclosure Market
Buying? Think Selling!
ALWAYS—ALWAYS Hire a Home Inspector
Be Your Own Inspector
Partnership Purchases
Condominiums
Financing Tips
Can't Afford A Down Payment?
Negotiating Tips
10 Tips For Winning A Bidding War
Homebuying Checklist
Home Warranty Tips
Can You Afford the Home You Want?
Green Building Tips

BUYERS' CORNER

Analyzing Your FinancesCan You Afford The Home You Want?

Do you have a stable income but wonder if you can afford the home your want. It may be helpful to do a quick calculation that can help you determine the price range that fits your financial situation.

GROSS MONTHLY INCOME __________
SUBTRACT LONG-TERM OBLIGATIONS
(LONGER THAN 1 YEAR/MONTHLY PAYMENT AMT.)
__________
TOTAL __________
MULTIPLY TOTAL X 12 TO GET ANNUAL INCOME __________
MULTIPLY ANNUAL INCOME X 3.5 TO DETERMINE APPROX. PRICE RANGE OF HOMES YOU SHOULD CONSIDER __________

This is, of course, a rough calculation. Your Realtor, lender, and an accountant can help you with the precise calculations that will take into account the uniqueness of your situation. However, this exercise will give you a rough idea of the price range where you should concentrate your search. And If you do have an accountant, he/she may be aware of circumstances, specific to your financial condition that may alter your potential price range. The tax advantages of home ownership combined with your anticipated tax bracket could significantly alter your numbers.

Once you’ve determined the price range for consideration, subtract the expected amount of down payment, and you can quickly see what the monthly payment will be for that amount. Click here for a Mortgage Calculator.

www.thehousingguru.com/misc/calculator.aspx

 

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