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.
For more help, use Fannie Mae’s online mortgage calculator
Reprinted from REALTORÒ Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORSÒ. Copyright 2005. All rights reserved. Amendments and additional information provided by Liz Maule.
Return to Previous Page ~ Return to Home Page
| 
