This is a bare bones break down of how much home you can afford by monthly payment. Keep in mind that factors such as your credit score, percentage of down payment, fluctuating interest rates, property tax, home owners insurance, and a whole host of additional factors can vastly change these figures. We will assume for purposes of this post that the interest rate is 4.25%, that property taxes are 1.125% a year, and home owners insurance is $800.00 a year. Also PMI is included in these figures.
Monthly Payment Purchase Price
In order to calculate a more accurate mortgage you need to contact a mortgage broker, or bank. The lenders will pour through your finances and establish an amount that is within your financial ability to pay.