{"id":245,"date":"2013-02-25T08:00:00","date_gmt":"2013-02-25T15:00:00","guid":{"rendered":"\/post\/2013\/02\/25\/how-much-house-can-I-afford.aspx"},"modified":"2024-01-05T10:54:11","modified_gmt":"2024-01-05T17:54:11","slug":"how-much-house-can-i-afford","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/how-much-house-can-i-afford\/","title":{"rendered":"How Much House Can I Afford?"},"content":{"rendered":"

Attractive interest rates, news of rising home values and tight rental markets have many Americans daydreaming about a new home. If you’re one of them, you may be surprised by how much home you can afford\u2014and how easy it can be to find out.
\"Attractive<\/p>\n

Step 1: Review your budget.<\/h2>\n

If you don’t already have a budget, write down all of your regular expenses and determine what kind of payment you feel comfortable making every month. Need a budget worksheet to help you get started? There’s one in our free First-time Home Buyer Guide \u00bb<\/a><\/p>\n

When you have a detailed picture of both your income and your expenses, you can get a more accurate idea of how much you can afford to spend on a monthly mortgage payment. While mortgage programs and lenders vary, a general guideline is to spend no more than 31% of your gross income on housing costs.<\/p>\n

Shortcut:<\/strong><\/em> Use your current monthly rent or mortgage payment as a starting point.<\/p>\n

Step 2: Take a look at your savings.<\/h2>\n

Depending on the type of mortgage you choose, you should plan on making a down payment that’s at least 3.5% of the price of the home. But, more is better. Why?<\/p>\n