Finding a Home
Financing a Home
Closing on a Home
How much house can I afford?
To figure out how much house you can afford, let’s take a look at some financial considerations. We’ll also explain the costs of homeownership and you can use our powerful mortgage calculator to help determine a comfortable loan amount.
How much can I afford?
Shopping for a new home? Find out how much you can afford.
Rule of thumb for what you can afford
You'll hear different advice on what you can afford depending on who you ask, but a good rule of thumb is to keep to these limits:
- 36% goes to pay debts.
Banks generally advise that your mortgage payment not be more than 28% of your monthly income, leaving 8% for other debts like a car loan.
- 31% of your income goes toward taxes.
That's the national average.
- 33% goes toward everything else.
Food, clothes, entertainment, vacations, savings, and investments that you put away for a rainy day.
|Homeownership expenses||What||How often|
|Before you buy a house||Credit Report
Home Inspection (Opens Overlay)
|One-time fee (credited at closing)
One-time fee (typically between $200-$500)
|During the home buying process||Application Fee
Good Faith Deposit
Closing Costs (Opens Overlay)
One-time fee (credited at closing)
One-time fee (typically between 2% and 6%)
|After you buy a house||Property Taxes
Private Mortgage Insurance (Opens Overlay)
Homeowner's Insurance (Opens Overlay)
Homeowners Association Dues
Utility (Water, Gas, Sewage, etc.)
Maintenance & Repairs