How Much House can You Afford? For Real

Calculate 30% of your monthly take home pay- A good rule of thumb is to not let your monthly mortgage payment exceed 30% of you net take-home pay to avoid being house poor.
Determine Final Purchase with Online Calculator - Back into your total mortgage budget using your number from step 1 by playing with numbers using an online calculator with various downpayment amounts, interest rates etc.
Estimate Closing Costs - Don't forget to factor closing costs into your total home budget! These are often overlooked. Ask your lender for a detailed list of closing costs so that you are prepared.
Factor Additional Homeownership Costs into Your Budget - With homeownership comes additional expenses- utilities, repairs maintenance, supplies, etc. Don't forget these!
Save For Your DownPayment - Aim to save at least 5% for a down payment. You can avoid PMI by making a 20% down payment on a conventional loan. The best route is a 15-years, Fixed-rate conventional loan if you really want to save.

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