Solve a Problem
How Much Can I Afford?
There are two different numbers here: what a lender may approve, and what will actually feel comfortable in your monthly budget. Start with the second one.
The situation
Affordability questions usually get answered with a single number, as if 'how much house can I afford' has one right answer. In practice there are two numbers worth knowing: the maximum a lender's guidelines might support, and the payment that leaves room for the rest of your life. Confusing the two is one of the most common sources of buyer's remorse.
Questions people in this situation usually ask
- What's the difference between what I qualify for and what I can comfortably afford?
- How do lenders calculate how much I can borrow?
- Should I use the maximum amount I'm approved for?
- How do property taxes and insurance change my real monthly payment?