How much of a mortgage can I qualify for?
The first step in buying a house is determining your budget. There’s an often-quoted rule of thumb that says that you can afford a house that costs up to two and one-half times your annual gross income. In reality, everyone’s individual situation differs and your maximum mortgage eligibility is determined by weighing your income, existing debts, the purchase price of the house, your down payment, the interest rate on the loan, and the cost of property taxes and insurance.
This calculator steps you through the process of finding out how much you can borrow. Simply enter in your information into the required fields to determine the maximum purchase price of the home for which you qualify.
- Will my fixed rate mortgage payment fluctuate throughout the life of the loan?
- How will my taxes be paid?
- What is private mortgage insurance (PMI) and how does it benefit me?
- What is an escrow account? Why do I need one?
- How long will it take to close my loan?