How Big a Mortgage Can I Afford?

 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.

 

This calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too.

 

Rent: _________________________

 

Multiplier: X       1.32

 

Mortgage payment: __________________

 

Because of tax deductions, you can make a mortgage payment—including taxes and insurance—that is approximately one-third larger than your current rent payment and end up with the same amount of income.

 

To determine what your monthly mortgage payment would be on various loan amounts, visit http://www.realtor.org/realtororg.NSF/pages/FMCalculators?OpenDocument&Login.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®.

Copyright 2004. All rights reserved.                                                                www.REALTOR.org/realtormag