Make the Most of our Mortgage Calculator
Here's how to figure out your home buying budget in a few easy steps:
Check Your Monthly Budget
- Aim to spend no more than 30% of your monthly income on housing
- Quick math: A $250,000 yearly income means about $6,250/month for housing
Look at Your Other Expenses
- List all your monthly payments (car loans, student loans, etc.)
- Lenders typically like to see your total bills (including future mortgage) under 36% of your income
- The lower your current expenses, the more you can spend on housing
Factor in All Housing Costs
Your monthly housing payment includes:
- Mortgage payment
- Property taxes
- Home insurance
- HOA fees (if applicable)
- Utilities and maintenance
Don't Forget Upfront Costs
- Down payment: 20% is ideal, but first-time buyers often pay 7-15%
- Closing costs: About $3,000 plus 3-6% of the home price
Finding the right balance helps you buy a home you'll love without stretching your finances too thin.