The most accurate way to figure what home you can afford is to be prequlified by a mortgage broker. They take into consideration your income, credit scores, and several other items. However, from a consumer's point of view, a good rule of thumb is a mortgage payment is ROUGHLY 1% of the total price of the home. For example, if you purchase a $100,000 house, your payments would be ROUGHLY around $1,000 per month. Remember, this is just a ROUGH guide to "guesstimate" what you may be comfortable paying per month.
Hope this helps. If I can be of further assistance to you, please feel free to contact me directly.
Kathy Ellis
Century 21 Showcase
6334 FM 2920, Suite 210
Spring, TX 77379
281-620-0714
kathyellis@century21.com
http://www.kathyellisrealtor.com - Sat Aug 2 2008, 10:33