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How Much House Can You Afford

Mortgage Calculator © ML


How much House can you afford?

Mortgage Calculator © ML

Mortgage Calculator © ML

How much of a payment can you comfortably afford?

This calculator is designed to let you know how much of your income the mortgage payment will be (aka – front end ratio) and how much of your income the mortgage payment PLUS all of your other revolving debt will be (aka – back end ratio).An affordable front end ratio is 31% – that means 31% of your income is your mortgage payment. An affordable back end ratio is 48% which is your mortgage payment PLUS all of your other revolving debt.


Mortgage Calculator © ML


How much House can you afford?

Mortgage Calculator © ML

Mortgage Calculator © ML

Now that we know how much of a payment you can comfortably afford, let’s figure out how much of a home you can afford.

For some of the numbers you will probably need to make an educated guess (unless you have a specific house in mind) on the taxes and the homeowners insurance. For a $300,000 home a safe guess-timate is in the $3,500 a year range. Homeowners Insurance will probably be in the $1,200 a year range.On the PMI portion for a 3.5% FHA loan place 1.14% for the cost of the monthly PMI and you will be right about there.

Mortgage Calculator © ML


Rent vs Buy Calculator

Mortgage Calculator © ML

Mortgage Calculator © ML

Rent vs. Buy


YES, the housing market did experience one of the biggest corrections since the Great Depression.What that doesn’t properly portray is all that was lost was the “bubble” increase. Values were brought back to 2001, before they skyrocketed beyond realistic amounts. A person that purchased their home in 1999 STILL has equity and the prices are STILL 7 to 8 times what they were in the 60’s and early 70’s.That equates to a 5-6% per year overall appreciation.Better than the stock market!!And that doesn’t mention the historically low interest rates we now have!!!