How Big of a Mortgage Can I Afford?

Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits - which you can't take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

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.

Should I Rent or Should I Buy?

This calculator will estimate the size of a mortgage you could afford based on the size of your monthly rent payment, the downpayment you could afford, and on the anticipated property taxes and homeowners insurance.

HOW MUCH BASED ON RENT CALCULATOR

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