Calculate Home Buying Power →
Secure lower interest rates, increasing your buying power.
Keep 1%–3% of the home's value in savings for annual repairs. calculate home buying power
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. Secure lower interest rates, increasing your buying power
Result in higher rates, which raises your monthly payment and lowers the total house price you can afford. 🧮 How to Calculate Your Power To get a realistic number, follow these steps: Step 1: Determine Monthly Income Take your annual salary and divide by 12. Example: $100,000 / 12 = $8,333/month Step 2: Apply the DTI Limit Result in higher rates, which raises your monthly
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.
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.
Set aside 2%–5% of the home price for fees; don't use this money for the down payment.
