Your financial situation determines the amount of payment your income can support.  Your Real Estate Agent can estimate the amount of loan you can borrow.

 Your financial institution can help determine the exact amount of loan you can borrow, and in most cases can pre-qualify you for a home loan.

 Usually lenders require that your housing cost, mortgage property tax and homeowner’s costs amount to no more than 28% of your annual income.  They also look at your total debt obligations, which increases this percentage, usually to 36%.  Sometimes your lender will allow your total debt obligation to equal 50% - 55%.

 Loans are usually based on a 5% down 30 year fixed rate conventional mortgage principal and interest (PMI). Hazard insurance is estimated at 1.5% of sales price.  Taxes are estimated at 1.5% of sales price.

For estimated figures with 10% down multiply home price by 1.29%.

 For estimated figures with 20% down multiply home price by 1.46%

 Click on the Hyperlink below to find out How Much Home You can Afford: