Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans.
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.
Check what a $1,950 principal/interest payment buys at current rates. At a 6.5% interest rate, $1,950 supports a loan of approximately . Step 5: Add Your Down Payment Add your saved cash to the loan amount. calculate home buying power
Example: $2,600 - $650 = Step 4: Use a Mortgage Table
Set aside 2%–5% of the home price for fees; don't use this money for the down payment. Your total monthly debt payments (mortgage + car
Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs
The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates Step 5: Add Your Down Payment Add your
To help you get a more accurate number, I can run specific calculations if you'd like to share: Your ? Your total monthly debt payments ? How much you have saved for a down payment ? Your approximate credit score range?