Calculate Home Buying Power Guide

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?

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 To help you get a more accurate number,

Set aside 2%–5% of the home price for fees; don't use this money for the down payment. Your approximate credit score range

A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.

The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates

Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.