Calculate Home Buying Power Here

Example: $2,600 - $650 = Step 4: Use a Mortgage Table

Subtract roughly from that max payment to account for property taxes and insurance. calculate home buying power

Buying power is the maximum amount you can spend on a home based on your financial profile. It combines your available for a down payment with the maximum loan a lender will grant you. 🏗️ The 3 Pillars of Buying Power 1. The 28/36 Rule Lenders typically follow these debt-to-income (DTI) ratios: Example: $2,600 - $650 = Step 4: Use

Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs 🏗️ The 3 Pillars of Buying Power 1

Example: $308,000 (Loan) + $50,000 (Cash) = ⚠️ Important Considerations

Set aside 2%–5% of the home price for fees; don't use this money for the down payment.

Result in higher rates, which raises your monthly payment and lowers the total house price you can afford. 🧮 How to Calculate Your Power To get a realistic number, follow these steps: Step 1: Determine Monthly Income Take your annual salary and divide by 12. Example: $100,000 / 12 = $8,333/month Step 2: Apply the DTI Limit