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How Much House Can You Afford?
December 10, 1999, Revised August 1, 2007

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Borrowers often begin their home search with only the foggiest idea about how much they can afford to pay, which can result in wasted time and frustration. They should know approximately how much they can afford before they start to shop.

The amount you can spend on a house depends on your income, the amount of cash you can allocate to the transaction, and the mortgage terms available in the market at the time you are shopping. These include interest rates, points, term, down payment requirements, and the maximum allowable ratio of housing expense to income. In addition, affordability may be affected by your existing indebtedness if this is higher than the indebtedness that lenders are willing to accept, and by closing costs which vary from one part of the country to another.

Verdana - Size 1
Borrowers often begin their home search with only the foggiest idea about how much they can afford to pay, which can result in wasted time and frustration. They should know approximately how much they can afford before they start to shop.

The amount you can spend on a house depends on your income, the amount of cash you can allocate to the transaction, and the mortgage terms available in the market at the time you are shopping. These include interest rates, points, term, down payment requirements, and the maximum allowable ratio of housing expense to income. In addition, affordability may be affected by your existing indebtedness if this is higher than the indebtedness that lenders are willing to accept, and by closing costs which vary from one part of the country to another.

Times New Roman - Size 2
Borrowers often begin their home search with only the foggiest idea about how much they can afford to pay, which can result in wasted time and frustration. They should know approximately how much they can afford before they start to shop.

The amount you can spend on a house depends on your income, the amount of cash you can allocate to the transaction, and the mortgage terms available in the market at the time you are shopping. These include interest rates, points, term, down payment requirements, and the maximum allowable ratio of housing expense to income. In addition, affordability may be affected by your existing indebtedness if this is higher than the indebtedness that lenders are willing to accept, and by closing costs which vary from one part of the country to another.

Verdana - Size 2
Borrowers often begin their home search with only the foggiest idea about how much they can afford to pay, which can result in wasted time and frustration. They should know approximately how much they can afford before they start to shop.

The amount you can spend on a house depends on your income, the amount of cash you can allocate to the transaction, and the mortgage terms available in the market at the time you are shopping. These include interest rates, points, term, down payment requirements, and the maximum allowable ratio of housing expense to income. In addition, affordability may be affected by your existing indebtedness if this is higher than the indebtedness that lenders are willing to accept, and by closing costs which vary from one part of the country to another.