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).
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.
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.
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.