How Much House Can I Afford?  5 Factors To Consider

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Purchasing a home is one of the most significant investments you will make in your lifetime. Find out here how much house you can afford.

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The first step in calculating how much house you can afford is determining the size of your down payment on the house.

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Types of mortgages, including 30-year fixed-rate loans, 15-year fixed-rate loans, and adjustable-rate mortgages, where the interest rate changes after every 3 to 5 years.

Now that you have decided on your down payment and mortgage, the next step in calculating how much house you can afford is to figure out your debt-to-income ratio (DTI).

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Another critical part of determining how much house you can afford is calculating how much monthly payment you can afford, which is based on the interest rate on your mortgage.

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In addition to your down payment, you will also need to pay closing costs. Closing costs are taxes and fees charged by the lender and other parties involved in the home purchase.

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The last step in calculating how much house you can afford is considering other factors such as property taxes and homeowners insurance rates in your area.

Find out more about the house you can afford and what you have to do to purchase one