Use this handy mortgage prequalification calculator to get a pretty good estimate of the property price you can afford based upon your income and debt profile.
Remember -- this is just a guide. Your actual amount will vary depending on a number of factors, especially interest rate, which will be based on your credit score. Only a lender can give you a more exact figure.
To produce estimates, both Annual Property Taxes and Insurance are expressed here as percentages. Generally speaking, and depending upon your location, they will generally range from about 0.5% to about 2.5% for Taxes, and 0.5% to 1% or so for Insurance.
Front End and Back End debt ratios are to determine how much of your monthly gross income can be used for your mortgage debt (front end) and how much can be used to satisfy all your regular obligations (back end). The 28% and 36% ratios are standard in the mortgage world, but lenders may have other combinations available, such as 33%/38%.
Recommended Reading
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Markets improving across the country
Real estate agents from across the country discuss the state of their market in April 2012. -
Renewed Eurozone worries drive mortgage rates to new record lows
HSH.com releases its latest Weekly Mortgage Rates Radar showing another downward move in mortgage rates from the previous week. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates for both declined to new lows during the week ending May 15. -
4 factors in the rent vs. buy decision
When Brandon Noel and his wife Pam relocated from Selden, N.Y., to Mount Prospect, Ill., they thought long and hard about whether to rent or buy their next home. -
Homebuyers: It's OK to overlook these 8 flaws
No matter how hard you look or how many homes your real estate agent shows you, getting everything you want when buying a home -- and getting it in perfect condition -- is impossible. -
Soft jobs report keeps mortgage rates at record lows
HSH.com releases its latest Weekly Mortgage Rates Radar showing little change in mortgage rates from the previous week. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates were mixed during the week ending May 08.
