How Much Home Can You Afford

How Much Home Can You Afford

This formula is only a guide and not to be construed as actual lending calculations.Contact your loan officer to determine more accurately what price range you should consider. 


Lenders abide by certain ratios when calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28% of your gross monthly income as the maximum allowed for your mortgage payment (principal/interest/taxes/insurance or PITI); for your total monthly debt, the ratio is 36%. 


Total monthly expenses means PITI plus long-term debt (such as auto loans) and revolving/credit-card debt. Do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio.


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Keith Judish Headshot
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Phone: 623-224-7956
Dated: January 17th 2019
Views: 451
About Keith: O'Keith Judish licensed REALTOR® with Realty ONE Group serving the West Valley and Phoenix Metrople...

2 Responses

  1. Lucy Thayer

    Hi, are HOA paid monthly. Is the amount noted divided into 12 months or is that the monthly due amount?

    Feb.18.2019

  2. Keith Judish

    Depending on the HOA they are set up monthly or quarterly.

    Feb.19.2019

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