Buying a Home

How Much Can You Afford?

Can you afford that new dream home? Find out here, and get a jump on the process.

Mortgage Affordability Chart

The following chart shows you how interest rates affect how much home you can afford to purchase. To use it, find the monthly mortgage payment you feel you can handle, then look under the interest rate column to see what loan amount you can afford at various interest rates. As an example, if you can afford a monthly mortgage payment of $1,200, you could take out a loan of $163,540 at 8%. Your loan amount, and consequently the amount of home you could buy, would be reduced to $149,138 if rates were to rise to 9%.

The chart is computed assuming a 30-year fixed rate conventional loan. The figures listed include principal and interest only. Your monthly tax and insurance escrow will add to your total monthly mortgage payment.

Monthly Payment	Interest Rate
	5.0%	6.0%	7.0%	8.0%	9.0%
$300	55,884	50,037	45,092	40,885	37,285
$400	74,513	66,717	60,123	54,513	49,713
$500	93,141	83,396	75,154	68,142	62,141
$600	111,769	100,075	90,185	81,770	74,569
$700	130,397	116,754	105,215	95,398	86,997
$800	149,025	133,433	102,246	109,027	99,425
$900	167,653	150,112	135,277	122,655	111,854
$1,000	186,282	166,792	150,308	136,283	124,282
$1,100	204,910	183,471	165,338	149,912	136,710
$1,200	223,538	200,150	180,369	163,540	149,138
$1,300	242,166	216,829	195,400	177,169	161,566
$1,400	260,794	233,508	210,431	190,797	173,995
$1,500	279,422	250,187	225,461	204,425	186,423
$1,600	298,051	266,867	240,492	218,054	198,851
$1,700	316,679	283,546	255,523	231,682	211,279
$1,800	335,307	300,225	270,554	245,310	223,707
$1,900	353,935	316,904	285,584	258,939	236,136
$2,000	372,563	333,583	300,615	272,567	248,564
$2,100	391,191	350,262	315,646	286,195	260,992
$2,200	409,820	366,942	330,677	299,824	273,420
$2,300	428,448	383,621	345,707	313,452	285,848
$2,400	447,076	400,300	360,738	327,080	298,276
$2,500	465,704	416,979	375,769	340,709	310,705
$2,600	484,332	433,658	390,800	354,337	323,133
$2,700	502,960	450,337	405,830	367,965	335,561
$2,800	521,589	467,017	420,861	381,594	347,989
$2,900	540,217	483,696	435,892	395,222	360,417
$3,000	558,845	500,375	450,923	408,850	372,846

Besides analyzing your income and expense, lenders are going to look to your ability to handle debt by scrutinizing your prior credit history. To do so, they will turn to a credit bureau to help establish your credit rating.



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