Home Affordability Calculator How Much House Can I Afford realtor com

Hey everybody it’s randy from cummings and company realtors with today’s tip housing affordability how much house can you afford so i found this cool little calculator on realtor.com forward slash mortgage forward slash tools forward slash affordability hyphen calculator you see that right here but you can also type in home affordability calculator there’s a lot

Of different tools out there one of them is like calculators.com it’s a little bit complex but if you have all the data it’s going to be a little bit more accurate i find that this is a good one just to give you a head start to give you a ballpark and i’m going to tell you another method figuring out as well so let’s start with your annual income so we’re going

To put in the annual income and then you’re going to follow that up with how much you currently pay in monthly debt the monthly debt you pay is in recurring or revolving accounts like credit cards uh car payments or um college loans as well so different things like that so put in how much you’re making in payments to those things let’s just say at 600 for the

Sake of argument then you’re going to want to put in what city you’re moving to and it will estimate the taxes and insurance for you and then how much you’re going to put down as a down payment it’d be great to put 180 000 down 150 000 with you when you only make 150 000 a year but that’s not realistic so and let’s just keep the credit score at good that will

Determine your price your uh interest rate so at this price range you would be able to with this income your budget you’d be able to afford 574 000 dollar house keep in mind it’s probably going to be within 30 or 40 thousand dollars of that either way depending upon how accurate you were and this is what your monthly payment would be now there’s another way

To determine what you think your monthly payment would be and that is let me move me out of the way here that is with a budget yes you don’t have to make one this complicated but sit down and do a zero budget which means account for every dollar you make if you make seventy two hundred dollars a month where does that seventy two hundred dollars go once you’ve

Accounted for all of it then you’ll be able to figure out where you’re bleeding money where you can afford to save more and what you can finally afford as a monthly payment i think you’ll probably find if you do this you’ll find that you can afford a monthly payment that’s a little bit higher than what you thought you could okay so get that back out of here move

Me back over whoa there i go um so this is one way to do it to figure out what it is you can play with the um the numbers and everything in here playing with the down payment a little bit will tweak how much you can afford because you are going to be limited in some situations by how much if you want something that’s much more accurate give me a call shoot me an

Email something like that and let me know i’ll get you in touch with one of our lenders it’ll be a little bit more of a lengthy process but in the end you’re going to know exactly how much you can afford and what you need to do if anything to make that dream a reality hope this helps have a great day talk to you soon

Transcribed from video
Home Affordability Calculator How Much House Can I Afford realtor comĀ® By The Pomfrey Team