Power — Calculate Home Buying

Set aside 2%–5% of the home price for fees; don't use this money for the down payment.

The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates calculate home buying power

Check what a $1,950 principal/interest payment buys at current rates. At a 6.5% interest rate, $1,950 supports a loan of approximately . Step 5: Add Your Down Payment Add your saved cash to the loan amount. Set aside 2%–5% of the home price for

Standard for many first-time buyer conventional loans. Credit Score & Interest Rates Check what a

Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs

Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans.

A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.