Secure lower interest rates, increasing your buying power.
Result in higher rates, which raises your monthly payment and lowers the total house price you can afford. 🧮 How to Calculate Your Power To get a realistic number, follow these steps: Step 1: Determine Monthly Income Take your annual salary and divide by 12. Example: $100,000 / 12 = $8,333/month Step 2: Apply the DTI Limit calculate home buying power
Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans. Secure lower interest rates, increasing your buying power
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. Secure lower interest rates