How Much House Can I Afford?
What’s the best way to determine your price range? The process involves analyzing your income and debt, the current mortgage rates, and the amount you would like to pay monthly. All of these factors will play a large part in your overall price range.
Our mortgage calculator can help you get an idea of how much you can afford in the Texas Hill Country. This algorithm will estimate the percentage of your income spent on monthly debt (since most lenders limit your debt-to-income ratio). The conventional loan limit is 36% of your monthly income, but FHA loans could allow for it to be higher. Your remaining income after debt (including a mortgage payment) and taxes should be enough to cover living expenses and savings goals.
mortgage:A contract that represents the debt owed by the borrower to the lender for the money borrowed to purchase a property.