How Much Home Can You Afford?
The amount you should budget for your mortgage payment depends on several factors, including the price of the home, your down payment, interest rate, property taxes, insurance, and other associated costs. As a general rule, your total monthly housing costs (including mortgage payment, property taxes, and insurance) should not exceed 28% of your gross monthly income.
For example, if your monthly gross income is $5,000, your total monthly housing costs should not exceed $1,400 (28% of $5,000). However, keep in mind that this is just a general guideline, and you should also consider your other monthly expenses and financial goals when determining how much you can afford to spend on housing.
It's a good idea to talk to a lender or mortgage broker to get a more accurate estimate of your monthly mortgage payment based on your specific financial situation and the current market conditions. They can also help you understand what types of loans and programs you may be eligible for, which can impact your monthly payment.
Our team knows home financing. We can help you understand how much home you can afford and connect you with programs that could extend your budget - possibly even to a newly built home. Let's connect!