You can use this calculator to get an idea of the price range you should consider. This is a fast and easy tool to use. You change play around with the numbers and see the effect on the affordability.
|Monthly Gross Income||$|
|Monthly Debt Expenses [?]
Monthly Debt and Obligations Should Include:
What do these things mean?
Here’s a quick breakdown of the variables above:
- Monthly Gross Income The amount you make before taxes each month
- Monthly Debt Expenses Monthly Debt and Obligations Should Include:
- Monthly Credit Card Payments
- Monthly Auto Payments
- Monthly Child Support
- Monthly Association Fees
- Other Monthly Obligations, but NOT utility bills.
- Down Payment This is the amount (in dollars) you can come up with at the time of signing
- Interest Rate This is the interest rate that you secure at the time of the dealThis changes all the time and will have a BIG impact on your affordability
And a note about the results:
- You Could Afford The maximum purchase price that you can comfortably afford
- Down payment This shows you what your down payment is as a percentage of the purchase price
- Loan Amount This is the amount that you would have to borrow
- Principal & Interest This is your monthly payment towards the principal amount of the loan and the interest
- Taxes and Insurance This is an estimate of what your taxes and insurance would be per month
- Total Payments This is your total monthly payment including principal, interest, taxes and insurance
Keep in mind that these calculators will give you some rough numbers. The numbers generated are pretty good, but keep in mind that they don’t factor in everything, so please only consider them a guide. Try to be as accurate as possible when estimating your costs.