Just Tips Tuesday - How Much Home Can I Afford?

Ok, this is going to be a super quick post!!


Let's get straight to the point.

To get a healthy general idea of the total amount of home you can be looking for following these guidelines... I'm going to use simple math to keep things easy. (Speak to a qualified lender to get exact numbers, this is very vague and general)

First... divide your income per month in half. That half is for living expenses such as groceries, gas, entertainment and all the other day to day stuff. 

Second, take the remaining and subtract out monthly debt you are already committed to. That included credit cards, car payments or furniture rentals. 

The remaining number is a rule of thumb of what you can afford per month. After you have that last number you can reverse engineer using a mortgage calculator. 

A $200,000 home should fall in anywhere from $1100-1400/month depending on taxes and insurance.

So... Thats it... Have fun searching for your dream home! :)