Before you start looking for a home, you have to ask yourself this question:

How Much Home Can I Buy?

In today's economic environment, owning a home makes great financial sense. One of the largest advantages is that home ownership provides significant tax benefits which are not available to you if you are paying rent.

Because of these tax deductions you will be able to afford a mortgage payment, including insurance and taxes, that can be 1/3 larger than your rent payment.

The following calculation assumes a 28% income tax bracket. Use the amount of rent you are currently paying and multiply it by 1.32. The result will give the approximate amount of mortgage you can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

You can use this calculator not only to find out how much house you can afford but also as a step towards getting pre qualified for a mortgage.

Pre qualify  Calculator

Make a more informed decision by finding out how much house you can afford based on your yearly income, your debts and other factors, with our Pre qualification Calculator. Call your lender for more information.