Is there a % of your income or something that you 'should' be spending total on taxes and mortgage (and pmi, if applicable)? Or some sort of formula to use to figure it out?
I know loan companies will often tell you you can afford more than you want to spend so we're trying to figure out on our own how much that is.
TracyInQueens
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Re: How to figure out how much you can afford?
I think the figure is different for a metropolitan area like ours- I think it's 25%.
Realtor.com and other sites have mortgage calculators that I used. I think I Googled 'mortgage calculator' and tried a few different ones, to see if there was consistency (which there was, give or take $10k). But we also considered what we were comfortable with. The figures we got were about $40-50k more than we wanted to spend.
We used those figures along with what we knew about what we wanted to spend to help us set a price range.
Jan05Bride
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Re: How to figure out how much you can afford?
Try going to DINKY TOWN. They have a ton of calculators to help you figure out stuff.
SeptemberBride03
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Re: How to figure out how much you can afford?
THere is a calculator on here that helps: Bank Rate - there are also tons of helpful articles.
Very roughly you can take 3x your income. If it's just to give you an idea. But, if you want a real answer before you go looking, get a pre-approval and you'll know exactly how much. Most banks have standards like a 30 or 40% debt to income ratio, some banks will go higher than others.
