Determine Your Price Range

When you decide to purchase a new home, your first step should be to determine how much you can afford to spend. Of course, your mortgage lender will ultimately assess the amount you're eligible to borrow. Therefore, you need to target an appropriate price range before you begin house hunting. 

I work with several local mortgage lenders. Call or email me and I will send you a current list. They can assist you at no cost to see exactly how much you can afford. There are many different mortgage programs available including those with no money down.

To get an estimated figure, look at your monthly budget and estimate how much you're willing and able to set aside for your mortgage payment each month. You should also consider how your monthly mortgage payment will relate to your total monthly income.

Generally, your total housing expense should not exceed 28% of gross monthly income (FHA is 29%, VA is N/A). Your total housing expense is the sum of principle, interest, and escrows. Also, total monthly obligations should not be greater than 36% of gross monthly income (FHA and VA are 41%). Monthly obligations include total housing expense plus payments on installment loans revolving credit payments, mortgage payments on real estate that doesn't produce income, and alimony and child support payments.

Calculators

There are many loan programs available ranging from NO DOWN PAYMENT to as little as 3% down. The following mortgage calculator will allow you to estimate monthly payments and total interest for different price range homes.

Compute your monthly loan payment and total interest for a fixed term loan. Choose from the mortgage payment calculator or the prequalification calculator.

30 year loan has 360 total payments
15 year loan has 180 total payments

Mortgage Calculator   Prequalification Calculator

These calculators are intended for informational purposes only. Whether you would like to buy a $50,000 or a $500,000 home, I would like to help. I can be reached at (256) 508-0211 or email.

 

"Huntsville Real Estate"

507 Drake Avenue Suite A Huntsville, AL 35801 Direct - (256) 508-0211 Toll Free - (800) 803-0053 Mike@HuntsvilleHomesOnline.com