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 calculators at:  Know Your Options

 

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Reprinted from REALTOR® Magazine Online by permission of the

NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved.