Sarah Martinez · Golden Key Realty
What price should I be shopping at?
Works backwards from your income, your debts and the deposit you have, using the same debt-to-income limits a lender applies.
How much home can I afford?
Price you could shop at
$770,040
Payment at that price
$5,263/mo
Loan amount
$650,040
Down payment
15.6%
| Monthly payment a lender would allow43% of gross income, less your other debts | $5,263 |
| Principal & interest | $4,109 |
| Property tax | $706 |
| Homeowners insurance | $150 |
| Mortgage insuranceCharged because the deposit is under 20% | $298 |
| Total monthly | $5,263 |
That payment is 38% of gross income. It qualifies, but it is a stretch — most people are comfortable nearer 28–30%.
Under 20% down, so mortgage insurance of $298 a month is included until the balance reaches 80% of the price.
While you're here
Monthly payment
What would the monthly payment be?
Budget → price
I can spend $X a month. What does that buy?
Cash to close
How much money do I need on the day?
Rent vs buy
Am I better off renting?
Points buydown
Is paying points worth it?
PMI drop-off
How long am I paying mortgage insurance?
Refinance
Is it worth refinancing?